J.P. Morgan Provides Color on International Paper Company and Temple-Inland

J.P. Morgan provided color on International Paper Company (NYSE: IP) and on its takeover attempt at Temple-Inland (NYSE: TIN).

In a research report published today, J.P. Morgan states, "IP's takeover offer for TIN, if transacted, would represent another big step forward in the consolidation of the containerboard sector, following on the heels of RKT/SSCC. While valuation looks reasonable in the context of historical transactions, we expect TIN to aggressively seek a premium valuation for its assets, particularly given its recent box plant investments in Corrugated, trough Building Products earnings and favorable corporate governance structure."

At the moment, J.P. Morgan has a Neutral rating and a price target of $36 on International Paper's stock. At the same time, J.P. Morgan placed a Neutral rating and a price target of $27 on Temple-Inland's stock.

On Monday, International Paper lost 0.77% of its value to close the day at $29.65. Its shares regained all of yesterday's losses in today's pre-market trading, however, rising 3.88% to $30.80. At the same time, Temple-Inland lost 3.14% of its value on Monday. Its shares skyrocketed in today's pre-market trading, however, surging 41.55% to $29.74.