11:22 AM EDT, 08/01/2025 (MT Newswires) -- International Paper's ( IP ) guidance for Q3 and 2025 implied a substantial ramp up in H2, which many saw as too high a bar and exited the stock, UBS said in Friday note, adding that it believed that the ramp up was possible on benefits from the company's 80/20 cost saving program.

While the 80/20 program will take until 2027, UBS said the company was seeing early results from commercial initiatives and cost savings.

UBS said IP's 2025 target for commercial initiatives was $600 million and the company already achieved a run rate of $650 million by Q2 end. IP's has been lagging the industry in volumes since 2023 and the company expects to be in-line or ahead of the market in Q4, UBS noted.

UBS said it maintains its long-term outlook on the company and reiterated its buy rating with a price target of $60.

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