Wells Fargo Raises International Paper Price Target to $43, Maintains Underweight Rating

Wells Fargo raised its price target on International Paper to $43 from $40 and maintained an Underweight rating. The firm notes Q2 started with uncertainty but largely met expectations, with Q2 Cboard pricing flat. However, Wells remains cautious due to stressed consumers, ongoing trade tensions, and underappreciated export demand risks.

Wells Fargo & Company has increased its price target for International Paper (NYSE: IP) from $40.00 to $43.00, according to a note issued to investors on Thursday [1]. The brokerage maintains an "underweight" rating on the stock, indicating a cautious stance despite the upward revision. The new price target suggests a potential downside of 17.94% from the stock's previous close.

Wells Fargo's analysis highlights the mixed performance of International Paper in the second quarter. While Q2 started with uncertainty, the company largely met expectations, with Q2 Cboard pricing remaining flat. However, the brokerage remains cautious due to stressed consumers, ongoing trade tensions, and underappreciated export demand risks.

The price target increase comes amidst a mixed analyst sentiment. Other brokerages have provided varying ratings and price targets for International Paper. For instance, JPMorgan Chase & Co. issued an "overweight" rating with a $59.00 price objective, while UBS Group and Royal Bank of Canada have issued "buy" ratings with price targets of $60.00 and $64.00, respectively [1]. Despite these differing views, the consensus target price among analysts stands at $55.65, with an average rating of "Hold" [1].

International Paper's stock performance has been relatively stable, trading up $1.04 during mid-day trading on Thursday to hit $52.40. The stock has a market capitalization of $27.66 billion, with a 12-month low of $42.35 and a 12-month high of $60.36 [1]. The company's debt-to-equity ratio is 0.51, and its quick ratio is 0.96, indicating a strong liquidity position.

Institutional investors have shown increased interest in International Paper. Hedge funds and other institutional investors own 81.95% of the company's stock, with several notable increases in holdings during recent quarters [1]. The company's latest earnings results, reported on April 30, showed an EPS of $0.23, missing the consensus estimate of $0.35. However, the company's revenue grew by 27.8% year-over-year, reaching $5.90 billion [1].

The company's strategic execution, including the divestment of five EU corrugated box industrial plants and strategic actions in the North American division, is expected to total $1.2 billion in savings over the next three years [2]. These moves align with the company's 80/20 philosophy of deploying resources in areas with the highest IRR.

International Paper's CEO, Andrew Silvernail, has a successful track record, having achieved 500% growth in total shareholder return at IDEX. His leadership is expected to drive the company's growth and transformation, particularly in its core packaging business.

In summary, Wells Fargo's price target increase for International Paper reflects a cautious yet optimistic view of the company's prospects. The stock's valuation and performance metrics suggest a balanced risk/reward profile, making it an interesting investment for those willing to navigate the current uncertainties.

References:
[1] https://www.marketbeat.com/instant-alerts/international-paper-nyseip-given-new-4300-price-target-at-wells-fargo-company-2025-07-10/
[2] https://seekingalpha.com/article/4800326-international-paper-stock-transformation-becomes-more-apparent-again-buy