International Paper's stock experienced a 6% surge on Tuesday as the company revealed ambitious growth targets during its annual investor day. The targets for 2027 are $26 to $28 billion in net sales and $2.0 to $2.5 billion in free cash flow, surpassing Visible Alpha's consensus. This performance boost made International Paper the leading gainer in the S&P 500 that day.
Analysts at Visible Alpha expected figures slightly below what International Paper announced, with projections of $26.96 billion in net sales and $1.81 billion in free cash flow. The company plans to enhance its operational efficiency by optimizing its production and reducing costs, focusing on serving high-value customers and markets.
International Paper, which underwent a leadership change a year ago and rejected a takeover bid from Suzano, merged with DS Smith to strengthen sustainability efforts and expand its global customer base. Over the past year, International Paper's shares have appreciated by 37%.