Stephens analyst Mark Connelly lowered his price target on WestRock (WRK) to $63 from $74 and cut his target for International Paper (IP) to $57 from $66 as he sees the two bearing the burden of maintaining market balance as he expects high containerboard prices to encourage a growing number of capacity additions. Connelly, who now projects about 3% capacity growth annually for the industry through 2022, believes Packaging Corp. (PKG) should trade at a significant premium as he sees it having multiple internal conversion prospects. He maintains Equal Weight ratings on WestRock and International Paper and an Overweight rating on Packaging Corp.

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."