Citigroup Lowers International Paper (NYSE:IP) Price Target to $36.00

Key Points

• Citigroup cut its price target to $36 from $44, joining other brokers in lowering targets after Q1 results; the stock's consensus rating is "Hold" with an average price target near $44.31.
• Q1 missed expectations—EPS $0.15 vs. $0.18 and revenue $5.97B vs. ~$6.02B—and management trimmed its 2026 outlook, spurring analyst downgrades and increased short‑term volatility.
• Insiders bought shares and liquidity improved: directors purchased roughly 36,092 shares recently, and IP raised about $1.1B from the sale of its Global Cellulose Fibers business, using proceeds to pay down debt and target $3.2–$3.5B of 2026 adjusted EBITDA and $300–$500M of free cash flow.

International Paper (NYSE:IP - Get Free Report) had its price target cut by Citigroup from $44.00 to $36.00 in a report released on Friday,MarketScreener reports. Citigroup's price target would suggest a potential upside of 13.04% from the company's previous close.

IP has been the subject of several other research reports. Seaport Research Partners upgraded International Paper from a "neutral" rating to a "buy" rating and set a $39.00 price target for the company in a research note on Friday. Royal Bank Of Canada decreased their price target on International Paper from $48.00 to $45.00 and set an "outperform" rating for the company in a research note on Friday. JPMorgan Chase & Co. decreased their price target on International Paper from $46.00 to $43.00 and set a "neutral" rating for the company in a research note on Friday. Deutsche Bank Aktiengesellschaft initiated coverage on International Paper in a research note on Wednesday, April 1st. They set a "hold" rating and a $38.00 price target for the company. Finally, BNP Paribas Exane decreased their target price on International Paper from $44.00 to $42.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Eight investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $44.31.

International Paper Stock Up 4.7%

NYSE:IP opened at $31.85 on Friday. The firm has a market capitalization of $16.86 billion, a price-to-earnings ratio of -4.75 and a beta of 0.94. International Paper has a 1-year low of $29.45 and a 1-year high of $56.13. The company has a current ratio of 1.21, a quick ratio of 1.02 and a debt-to-equity ratio of 0.55. The business's fifty day moving average price is $37.25 and its 200 day moving average price is $40.12.

International Paper (NYSE:IP - Get Free Report) last issued its earnings results on Thursday, April 30th. The basic materials company reported $0.15 EPS for the quarter, missing analysts' consensus estimates of $0.18 by ($0.03). International Paper had a negative net margin of 13.42% and a negative return on equity of 0.49%. The firm had revenue of $5.97 billion during the quarter, compared to analysts' expectations of $6.02 billion. During the same quarter last year, the firm earned $0.17 EPS. The business's revenue for the quarter was up 13.4% compared to the same quarter last year. On average, sell-side analysts forecast that International Paper will post 1.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Scott Tozier acquired 10,000 shares of the firm's stock in a transaction on Friday, May 1st. The shares were purchased at an average price of $31.30 per share, with a total value of $313,000.00. Following the acquisition, the director directly owned 10,025 shares in the company, valued at $313,782.50. The trade was a 40,000.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, Director Anders Gustafsson acquired 13,217 shares of International Paper stock in a transaction dated Thursday, March 12th. The shares were purchased at an average cost of $37.83 per share, with a total value of $499,999.11. Following the completion of the transaction, the director directly owned 26,092 shares of the company's stock, valued at $987,060.36. This trade represents a 102.66% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 36,092 shares of company stock valued at $1,313,064 over the last ninety days. Insiders own 0.21% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Capital International Investors boosted its stake in International Paper by 51.4% during the 3rd quarter. Capital International Investors now owns 48,990,719 shares of the basic materials company's stock valued at $2,272,966,000 after purchasing an additional 16,622,062 shares during the last quarter. Franklin Resources Inc. raised its holdings in shares of International Paper by 81.6% in the 4th quarter. Franklin Resources Inc. now owns 14,832,952 shares of the basic materials company's stock worth $584,270,000 after purchasing an additional 6,663,986 shares during the period. Norges Bank bought a new stake in International Paper during the 4th quarter valued at $250,093,000. Capital Research Global Investors raised its holdings in International Paper by 7.5% during the 3rd quarter. Capital Research Global Investors now owns 54,330,790 shares of the basic materials company's stock valued at $2,520,945,000 after acquiring an additional 3,768,772 shares during the period. Finally, Atlas FRM LLC raised its position in shares of International Paper by 56.3% during the 4th quarter. Atlas FRM LLC now owns 5,000,000 shares of the basic materials company's stock valued at $196,950,000 after buying an additional 1,800,000 shares in the last quarter. 81.95% of the stock is owned by institutional investors.

More International Paper News

Here are the key news stories impacting International Paper this week:

• Positive Sentiment: Director Scott Tozier bought 10,000 shares at about $31.30, a direct insider purchase that can be viewed as a vote of confidence by management. SEC Form 4
• Positive Sentiment: Balance‑sheet and cash flow actions: IP received ~$1.1B net proceeds from the sale of its Global Cellulose Fibers business, used ~$660M to pay down debt, generated $611M of operating cash and reported $94M FCF for Q1 — these moves materially improve liquidity and lower leverage. Press Release
• Positive Sentiment: Management’s 2026 targets: IP is guiding to $3.2B–$3.5B of adjusted EBITDA for 2026 and is targeting $300M–$500M of free cash flow, providing a framework for recovery if cost pressures ease. SA: 2026 targets
• Neutral Sentiment: Company filed an 8‑K and held its Q1 call; the transcript and slide deck are available for investors to assess management commentary on costs and the EMEA separation. TipRanks 8‑K
• Neutral Sentiment: Unusually large options flow was observed (big increase in both call and put activity), signaling heightened short‑term speculative interest and volatility. (No single authoritative story; flagged in market activity notes.)
• Negative Sentiment: Q1 missed expectations on EPS ($0.15 vs. $0.18 consensus) and revenue ($5.97B vs. ~$6.02B), and margins were pressured — a direct near‑term negative for sentiment. Q1 results
• Negative Sentiment: Analysts cut forecasts and price targets after Q1 and guidance; JPMorgan trimmed its PT to $43 and moved to neutral, and several outlets report analysts “slashing” forecasts — these actions weigh on near‑term upside. Benzinga: analyst reactions
• Negative Sentiment: Management trimmed its 2026 adjusted EBITDA outlook vs. prior expectations and cited higher costs and macro pressures — the primary driver of the recent negative revisions in sentiment. Zacks: lowered outlook

International Paper Company Profile

International Paper is a global producer of renewable fiber-based products, focused primarily on pulp, paper, and packaging. The company manufactures containerboard and corrugated packaging used for shipping and retail display, as well as a range of specialty papers and pulp products that serve industrial, consumer goods, and e-commerce customers. Its product portfolio is oriented toward large-scale packaging solutions, tissue and paper grades, and raw pulp for a variety of manufacturing uses.

Founded in 1898, International Paper is headquartered in Memphis, Tennessee, and is one of the largest and longest-established companies in the forest products sector.

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