Story updated at 10 a.m. to reflect market activity.
International Paper gained 0.3% to $45.46 in morning trading.
The firm set a price target of $67 for the paper producer. Attractive valuation and upside driven by strong fundamentals contributed to the rating. Credit Suisse analysts also cited International Paper's forceful corporate actions and attractive capital returns to shareholders.
Separately, TheStreet Ratings team rates INTL PAPER CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTL PAPER CO (IP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IP's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 2.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- INTL PAPER CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, INTL PAPER CO increased its bottom line by earning $3.01 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($3.70 versus $3.01).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Paper & Forest Products industry average. The net income increased by 85.5% when compared to the same quarter one year prior, rising from $235.00 million to $436.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Paper & Forest Products industry and the overall market, INTL PAPER CO's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $1,037.00 million or 45.44% when compared to the same quarter last year. In addition, INTL PAPER CO has also modestly surpassed the industry average cash flow growth rate of 37.12%.
- You can view the full analysis from the report here: IP Ratings Report