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Fly News Breaks for December 10, 2019
Dec 10, 2019 | 05:23 EDT
Goldman Sachs analyst Brian Maguire downgraded International Paper (IP) to Sell from Neutral with an unchanged price target of $40. The stock closed Monday up 16c to $47.42. The analyst has concerns over containerboard pricing in 2020 as well as earnings risks at other parts of the company's business. In the last three months, International Paper shares have outperformed the market despite downward revisions to 2020 consensus estimates, Maguire tells investors in a research note. As a result, the company's valuation level is now in line with its historical average, despite heightened risk of containerboard price cuts, says the analyst. With his expectation for an 8.4% increase in North American capacity to enter the market starting in 2020, and weak demand from a slowing industrial economy, Maguire believes there will be further containerboard price cuts in 2020. The analyst this morning also downgraded Packaging Corp. of America (PKG) to Sell.
News For IP;PKG From the Last 2 Days
Feb 25, 2021 | 05:38 EST
International Paper has acquired Berkley International's Molded Fiber manufacturing division, Berkley MF, for an undisclosed purchase price. Calabasas Capital served as exclusive financial advisor to Berkley. After seven years of manufacturing outside of Los Angeles, Berkley moved operations into an 80,400 square foot state of the art molded fiber manufacturing plant outside of Reno, Nevada in 2019. Berkley International works with high growth CPG companies who are looking to utilize their sustainable packaging technology for ecommerce and food packaging applications. Berkley MF provides in house design, manufacturing and distribution of custom molded fiber packaging products.