International Paper Company

Company Overview: International Paper Company (NYSE: IP) is a producer of renewable fiber-based packaging and pulp products with manufacturing operations. The Company operates in two segments: Industrial Packaging and Global Cellulose Fibers. The Industrial Packaging segment is a manufacturer of containerboard in the United States. The Cellulose Fibers segment offers a product portfolio, including fluff, market, and specialty pulps. The Company operates over 24 pulp and packaging mills, approximately 163 converting and packaging plants, over 16 recycling plants, and over three bag facilities. Its production facilities are in Canada, Europe, North Africa, and Latin America.

As per our previous US Diversified Opportunities report published on ‘IP’ on 01st August 2023, Kalkine provided a ‘Buy’ stance on the stock at USD 29.44 based on “expected valuation upside, consistent dividend paying history, lower balance sheet risk, risk associated and trading levels” and the stock price has now moved by ~23.71% since then and the price has achieved both resistance levels.

Noted below are the details of support and resistance levels provided in our previous report:

IP’s Daily Chart

Considering the resistance around the range of USD 36.00 – USD 40.00, current trading levels, risks associated, and volatile market conditions on the back of higher interest rates, a ‘Sell’ rating is assigned to the “IP” at the current market price of USD36.42 (as of 12 March 2024, 07:05 am PDT). 

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 12, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’