Wells Fargo analyst Chris Manuel upgraded International Paper (IP) to Outperform from Market Perform and raised his price target for the shares to $70 from $53. The analyst sees accelerating earnings and cash flow growth stemming from an upswing in pricing for all three of the company's primary products - containerboard, cellulose fibers, and printing paper. Further, the analyst views a potential transaction with Smurfit Kappa (SMFTF) as less than 20% probability. The share overhang over a potential combination with Smurfit should dissipate as the June 6 deadline approaches and investors gain comfort a deal is off the table, Manuel tells investors in a research note. He expects International Paper will announce a share repurchase initiative and/or dividend increase once the June 6 date passes.

Reports Q1 revenue $4.62B, consensus $4.56B. "International Paper made progress executing our strategic initiatives in the first quarter,'' said Mark Sutton, chairman and CEO. "We saw commercial benefits from our business strategies, as well as cost benefits from mill system optimization. Although costs remain elevated and volumes were seasonally lower in the quarter, market trends continue to improve."