UBS has downgraded International Paper Company (IP) from Buy to Neutral and lowered its price target, citing expected ongoing cost pressures in 2026 and 2027 due to transformation initiatives. Despite near-term earnings pressure from restructuring, the company aims for $5 billion in EBITDA by 2027 through operational improvements and cost savings. International Paper is highlighted as an attractive cyclical recovery stock due to its scale and clear multi-year margin expansion targets.
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UBS Downgrades International Paper Company (IP) on Ongoing Cost Pressures
UBS has downgraded International Paper Company (IP) from Buy to Neutral and lowered its price target, citing expected ongoing cost pressures in 2026 and 2027 due to transformation initiatives. Despite near-term earnings pressure from restructuring, the company aims for $5 billion in EBITDA by 2027 through operational improvements and cost savings. International Paper is highlighted as an attractive cyclical recovery stock due to its scale and clear multi-year margin expansion targets.