On Tuesday, International Paper (NYSE:IP) received a stock rating upgrade from Citi, moving from Neutral to Buy, with an increased price target set at $46.00, up from the previous $36.00. The adjustment comes in the wake of the company's appointment of Andy Silvernail as its new CEO. Silvernail, who has a notable track record as the former CEO of IDEX (NYSE:IEX) from 2011 to 2020, was most recently an executive advisor at KKR.
Citi's positive stance on International Paper reflects the potential for significant changes under Silvernail's leadership. The firm acknowledges that since their initial coverage began in 2010, International Paper has faced challenges with a complex portfolio and has generally underperformed, especially when compared to its Containerboard peer, Packaging (NYSE:PKG) Corporation of America (PKG).
Despite the efforts of outgoing CEO Mark Sutton, who made substantial progress in streamlining the company's portfolio through various strategic moves such as the White Paper spinoff and exiting markets in China, India, and Russia, Citi believes that the task of simplifying the company's operations is only partially complete.
The appointment of Silvernail is seen by Citi as a pivotal moment for International Paper. Being an outsider to the company, Silvernail is expected to bring a fresh perspective and potentially act as a catalyst for further positive change within the organization.
Citi's revised price target and upgraded rating indicate a renewed confidence in International Paper's trajectory with the leadership transition. As the company embarks on this new chapter, market watchers will likely be attuned to the strategic decisions and operational changes that may unfold under Silvernail's guidance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.