International Paper Stock Soars 6% on Optimistic Growth Targets
Key Takeaways
- International Paper (IP) stock surged 6% on Tuesday, leading S&P 500 gainers, after unveiling new growth targets 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, surpassing Visible Alpha consensus estimates.
- International Paper continues to optimize its production footprint, having closed seven plants without impacting customer service, while focusing on cost efficiency and high-value markets.
Growth Outlook and Strategic Moves
Shares of International Paper (IP) soared 6% on Tuesday, topping the S&P 500 gainers list, following the company's bullish growth forecast at its annual investor event.The packaging giant announced ambitious 2027 performance targets, projecting net sales between $26 billion and $28 billion and free cash flow of $2.0 billion to $2.5 billion. These figures exceeded analysts' expectations, with Visible Alpha forecasting $26.96 billion in sales and $1.81 billion in free cash flow.
As part of its cost-cutting and efficiency strategy, International Paper has already closed seven plants without disrupting operations. The company emphasized its commitment to streamlining production, improving efficiency, and prioritizing high-value customers and markets.