International Paper Co

IP: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$45.00	Pbv	Jngqglhv

International Paper Earnings: Pricing Pressure Offsets Cost Savings Initiatives; Shares Attractive

Spencer Liberman

Oct 26, 2023

No-moat-rated International Paper reported mixed third-quarter results as lower pricing across its business offset relatively stable volumes in the quarter. Net sales decreased 14.5% as both segments reported double-digit declines amid considerable pricing pressure. Destocking continues to be the story for International Paper as inventory management initiatives directly affect demand for packaging. That said, management noted sequential improvements in destocking trends, which could provide some relief going into 2024. As such, we've decreased our fair value estimate to $41 from $42 per share due to lower near-term revenue in our forecast.

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