11:49 AM EST, 01/31/2025 (MT Newswires) -- International Paper ( IP ) is making steady progress in its strategic and commercial initiatives, with a focus on integrating the acquired DS Smith platform, RBC Capital Markets said in a report Friday.

The upcoming investor day in March is expected to provide more details on the company's plans for integration, achieving its EBITDA targets, likely revised to include DS Smith, and its overall strategy for growth and value creation, the report said.

International Paper ( IP ) plans to make $1.2 billion in capital expenditures in 2025, up from $921 million in 2024, focusing on addressing past "underinvestment" in mills to improve performance, RBC said. The company is also "radically changing" its capital investment process to enhance efficiency and timelines, particularly by granting more authority for routine and smaller-ticket items.

"We continue to see an attractive opportunity when considering both a cyclical market recovery and the significant changes playing out across the business," RBC said.

RBC reiterated its outperform rating on International Paper ( IP ), with a price target of $64.

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