03:29 PM EDT, 07/25/2024 (MT Newswires) -- International Paper ( IP ) is highlighting an "enticing" potential upside with its $4 billion EBITDA target over the medium term, RBC Capital Markets said in a report Thursday.

The target is well above the FactSet consensus EBITDA of $2.9 billion for 2026, reflects the standalone International Paper ( IP ) portfolio, and does not represent a pro-forma target inclusive of the acquisition by the company of DS Smith, according to the investment firm.

"We came away from the Q2 earnings call with a positive view of the strength of management's conviction in its ability to drive better performance over the medium term through improving reliability, sharpening its focus on customer strategy and investments, and reducing its operating cost base," it said.

RBC said patience will be needed though as the company issued underwhelming Q3 guidance and signaled around three to four "choppy" quarters to come.

RBC reiterated its outperform rating on the stock as it raised its price target to $56 from $52.

Price: 46.36, Change: +0.07, Percent Change: +0.16