Shares of International Paper Co. fell 0.6% in premarket trading Tuesday, to buck the big rally in the broader stock market, after Deutsche Bank analyst Kyle White turned bearish on the paper and packaging products company, citing concerns over falling containerboard prices. "Given weakening demand and upcoming capacity additions, we anticipate containerboard prices will fall by $100 per ton in total over the next year," White wrote in a note to clients. "This would bring domestic kraftliner prices down to $835 per ton for a 10.7% reduction from current levels at $935." He lowered his rating on International Paper to sell from hold and cut his stock price target to $29 from $44. He also downgraded Packaging Corp. of America to sell from neutral and dropped his price target to $104 from $144, as the stock fell 0.6% ahead of the open. The stocks are two of only 14 of the S&P 500's components that are losing ground in the premarket, as S&P 500 futures surged 2.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
