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Stock impact report

JP Morgan starts on International Paper at ‘overweight', calls Smurfit top pick [Yahoo! Finance]

International Paper Company (IP) 
Last international paper company earnings: 4/30 07:00 am Check Earnings Report
US:NYSE Investor Relations: internationalpaper.com/performance
Company Research Source: Yahoo! Finance
IP's "80/20 strategy" focuses on improving margins by prioritizing high-value accounts and reducing exposure to lower-margin business. JP Morgan believes this shift, along with potential capacity reductions, could strengthen IP's competitive position in the U.S. corrugated packaging market. “IP's profitability turnaround is centered on optimizing its cost structure and focusing on value over volume, which could lead to improved market tightness and pricing power,” JP Morgan wrote. IP aims to double EBITDA from $2 billion to $4 billion over the medium term by aligning costs with contract profitability and streamlining operations. The company may close some less profitable production assets, particularly in low-margin export markets, which could help increase U.S. operating rates above 95% in the next 2-3 years—a level historically associated with price increases of 2-4% ahead of costs. The DS Smith acquisition expands IP's presence in Europe, potentially opening opportunities Show less Read more
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