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Key Takeaways
- Shares of Worldwide Paper jumped 6% Tuesday after the corporate unveiled new development targets at its annual investor day.
- The corporate set 2027 efficiency targets of $26 billion to $28 billion in web gross sales and $2.0 billion to $2.5 billion in free money move, each above Seen Alpha consensus.
- The inventory led gainers on the S&P 500 on Tuesday.
Worldwide Paper (IP) inventory jumped 6% to steer S&P 500 gainers Tuesday after the packaging maker outlined rosy development projections at its annual investor day.
The corporate set 2027 efficiency targets of $26 billion to $28 billion in web gross sales and $2.0 billion to $2.5 billion in free money move. Analysts polled by Seen Alpha had been anticipating $26.96 billion and $1.81 billion, respectively.
The corporate mentioned it’s going to proceed working to optimize its manufacturing footprint, noting it has closed seven vegetation thus far "with no buyer affect." It should additionally look to chop prices by making its vegetation extra environment friendly, with a concentrate on allocating extra assets to higher-value clients and markets.
The corporate, which changed its CEO a yr in the past, was the goal of a failed takeover effort by Brazilian rival Suzano. Earlier this yr, Worldwide Paper merged with one other sustainable packaging producer, DS Smith, saying that “the mix brings collectively one of the best of each firms to speed up development, enhance profitability and serve clients all around the world.”
Shares of Worldwide Paper have gained 37% within the final 12 months.
