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International Paper Stock Leads S&P Gainers on New Growth Targets
Key Takeaways
International Paper ( IP ) stock jumped 6% to lead S&P 500 gainers Tuesday after the packaging maker outlined rosy growth projections at its annual investor day.
The company set 2027 performance targets of $26 billion to $28 billion in net sales and $2.0 billion to $2.5 billion in free cash flow . Analysts polled by Visible Alpha were expecting $26.96 billion and $1.81 billion, respectively.
The company said it will continue working to optimize its production footprint, noting it has closed seven plants to date "with no customer impact." It will also look to cut costs by making its plants more efficient, with a focus on allocating more resources to higher-value customers and markets.
The company, which replaced its CEO a year ago , was the target of a failed takeover effort by Brazilian rival Suzano. Earlier this year, International Paper merged with another sustainable packaging producer, DS Smith, saying that "the combination brings together the best of both companies to accelerate growth, improve profitability and serve customers all over the world."
Shares of International Paper have gained 37% in the last 12 months.
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