International Paper Company : Strong bullish consensus
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02/06/2013 | 10:35am
Opinion : Bullish above 42.4 USD
Target price : 50.5 USD
Stop loss: 39.9 USD
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NYSE
Paper Products |
International Paper Company could reach its USD 50.5 resistance.
The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.9 by the Thomson Reuters consensus for this year. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. Increasing moving averages let think there will be no reversal in the coming trading sessions. This growth should help to reach soon the USD 50.5 long term resistance.
In consequence, investors can take a long position in International Paper Company with a first target price at USD 50.5. This level is the long term resistance. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be fixed under the short term support at USD 40.85.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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12,4x |
10,0x |
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Capitalization / Revenue
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0,70x |
0,68x |
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EV / Revenue
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0,95x |
0,88x |
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EV / EBITDA
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6,31x |
5,33x |
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Yield (DPS / Price)
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2,68% |
3,03% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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9,96% |
11,5% |
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operating laverage (Delta EBIT / Delta Sales)
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4,54x |
6,33x |
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Net Margin (Net Profit / Revenue)
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5,71% |
6,75% |
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ROA (Net Profit / Asset)
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6,27% |
7,43% |
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ROE (Net Profit / Equities)
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22,9% |
25,7% |
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Rate of Dividend
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33,3% |
30,3% |
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