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Research Alert: CFRA Reiterates Strong Sell Opinion On Shares Of International Paper Company
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Research Alert: CFRA Reiterates Strong Sell Opinion On Shares Of International Paper Company
Nov 7, 2025 10:38 AM

01:20 PM EST, 11/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $3 to $27, on an EV/EBITDA of 6.7x our next-12-month EBITDA estimate of $3.137 billion, one standard deviation (1.3x) below IP's five-year average of 8.0x. We cut our 2025 EPS view by $1.57 to $0.25, cut 2026 EPS by $0.97 to $2.35, and initiate 2027 EPS at $3.28. However, IP's inconsistent treatment of accelerated depreciation charges and strategic methodology changes have made EPS forecasting increasingly unreliable, with massive facility closure costs distorting adjusted metrics and creating artificially depressed 2025 baselines that will likely generate misleading Y/Y comparisons in 2026-2027. Consumer demand sustainability concerns amplify volume pressures as real goods consumption growth significantly exceeds purchasing power gains, indicating consumption financed through savings drawdowns or debt accumulation that will require correction. We expect the timeline for meaningful volume recovery to extend well into 2026 as key end markets shift from recovery to stagnation.

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