International Paper's (IP) quarterly update was "neutral" overall, as stronger-than-expected Q2 results and progress on investments were offset by weaker Q3 guidance, RBC Capital Markets said in a report emailed Friday.
The analysts noted positive pricing on North American containerboard, where capacity reductions have helped lift prices by about $100 per ton so far this year, with further price increases planned for September.
International Paper's recent investments, including the Riverdale, NORPAC and Dover operations appear to be progressing well, which could support growth into 2027, according to the report.
But the company is also facing headwinds from higher transportation costs, higher employee medical costs and the temporary outage of its Pine Hill, Alabama mill after a weather event, the report said.
RBC maintained an outperform rating on International Paper and raised its price target to $52 from $48.
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