Citi Raises PT on International Paper Co to $34 (IP)

Citi is out with its report today on International Paper (NYSE: IP), raising its PT from $33 to $34.

In a note to clients, Citi writes, "We have raised 2012 estimates 10¢ to incorporate the full impact of the containerboard price hike as well as stronger forecasted uncoated freesheet prices (+2.5% Y/Y). We have reduced our 2013 EPS estimates to reflect pro forma operating margins declining from 10.3% in 2012 to 9.1% in 2013 as cost inflation catches up with pricing, although our 2013 estimates remain above consensus. Based on our updated estimates and IP's lower net debt (including pension underfunding) our target price moves to $34."

Citi maintains Buy on IP.

Shares of IP closed Monday at $28.97, down 3.11% from Friday's close.