International Paper's Margin Goals Supported by Cost Savings Beyond 2026, RBC Says

MT Newswires Live11-05

International Paper's (IP) goal of achieving mid-teens adjusted EBITDA margins over the medium term is supported by remaining cost-saving opportunities and benefits from paper price increases in indexed packaging contracts, RBC Capital Markets said Wednesday in a report.

The company has identified 280 million euros ($314.2 million) of additional cost savings beyond 2026, while pricing actions are expected to provide a near-term benefit, RBC said.

RBC also cited potential support from mill cost improvements, additional efficiency initiatives, increased business from existing customers and returns on growth investments.

At the DS Smith unit, efforts to lower recycled containerboard mill costs are expected to improve competitiveness and support margins, the report said.

RBC reiterated its outperform rating on International Paper stock and its $45 price target.

Price: 35.87, Change: +0.75, Percent Change: +2.14

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