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Citigroup Cuts Price Target for International Paper, but Still a “Buy” (IP)

By Dividend.com,  July 09, 2012, 10:44:49 AM EDT

Paper products maker International Paper Company ( IP ) on Monday caught some mixed commentary from analysts at Citigroup.

The firm maintained its "Buy" rating on IP but lowered its price target from $40 to $34. That new target suggests a 17% upside to the stock's Friday closing price of $29.07.

A Citigroup analyst commented, "We are lowering 2012 EPS by 5%, but raising 2013 (+3%) and 2014 (+9%) estimates. Our changes are based on weaker-than-expected freesheet prices in 2012 and the pushout of an expected containerboard price hike, with product price recovery and Temple-Inland synergies raising numbers in 2013-14. With our updated estimates our target price moves to $34; maintain Buy."

International Paper shares fell 39 cents, or -1.3%, in morning trading Monday.

The Bottom Line
Shares of International Paper ( IP ) have a 3.61% dividend yield, based on Friday's closing stock price of $29.07. The stock has technical support in the $26 price area. If the shares can firm up, we see overhead resistance around the $30-$32 price levels.

International Paper Company ( IP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: IP



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