Credit Suisse analyst Lars Kjellberg reinstated coverage of International Paper with a Neutral rating and $48 price target. In a research note to investors, Kjellberg says the company's strengths are cash flow generation and its domestic containerboard operations and its weaknesses are limited options to deploy capital to grow its core domestic containerboard operations, weak cost position in pulp, and the structurally declining uncoated free sheet business. The analyst sees scope for increasing shareholder returns as a driver for the shares but less opportunity for IP to develop and grow its business due to its dominant position in U.S. containerboard and global fluff pulp. The analyst adds that he would like to see IP restructure its weak pulp business and figure out what to do with the uncoated freesheet business.

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."