International Paper Downgraded to “Hold” at Deutsche Bank on Valuation (IP)

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Paper products giant International Paper Company ( IP ) on Monday received a big downgrade from analysts at Deutsche Bank.

The firm cut its rating on IP from "Buy" to "Hold" with a $39 price target, suggesting a 7% upside to the stock's Friday closing price of $36.30.

A Deutsche Bank analyst commented, "…IP's stock has rallied sharply in the past few weeks in anticipation of successful implementation of the $50/ton containerboard price hike. However, with sluggish demand and continued drop in OCC costs, we're a bit cautious. At the same time, market conditions in IP's other key businesses (uncoated free sheet, bleached board & market pulp) also appear soft. At current levels, we think the stock is fairly valued."

International Paper shares fell 95 cents, or -2.6%, in premarket trading Monday.

The Bottom Line
Shares of International Paper ( IP ) have a 2.89% dividend yield, based on Friday's closing stock price of $36.30. The stock has technical support in the $32-$34 price area. If the shares can firm up, we see overhead resistance around the $39-$40 price levels.

International Paper Company ( IP ) is not recommended at this time, holding a 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.

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This article appears in: Investing , Stocks

Referenced Stocks: IP

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