Citi analyst Anthony Pettinari resumed coverage of International Paper with a Buy rating and $65 price target. The rating is unchanged while the target is lowered from $71 relative to Citi's prior coverage. The last time International Paper traded at this steep of a discount to the S&P 500 Index, the stock outperformed the market by 2,800 basis points over the near- to mid-term, Pettinari tells investors in a research note. He expects a "more disciplined capital allocation approach" that favors buybacks and debt paydown over acquisitions following the company's decision to not to issue a third bid for SKG.

Wells Fargo lowered the firm's price target on International Paper (IP) to $37 from $42 and keeps an Equal Weight rating on the shares. While improving containerboard fundamentals are positive for International Paper, Wells believes the DS Smith (DITHF) merger remains an overhang, the analyst tells investors in a research note. In addition, the firm says it remains unclear how long or what level of return is associated with increased spend across the company's Industrial Packaging operations.

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."