Materials Companies Face EPS Downgrades, PKG Rated Lowest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: seekingalpha
- Earnings Downgrades: As earnings season approaches, analysts have broadly downgraded earnings expectations for materials companies, with Packaging Corporation of America (PKG) rated the lowest, indicating a lack of market confidence in its near-term performance.
- Rating Distribution: Among large-cap materials firms, FRPM International (RPM) and PPG Industries (PPG) received grades of D- and D respectively, suggesting a pessimistic outlook from analysts that could impact investor sentiment.
- Industry Trends: Overall, International Paper (IP) and POSCO Holdings (PKX) both received D grades, reflecting the challenges faced by the materials sector in the current economic climate, potentially leading to capital outflows.
- Market Performance: While the materials sector is expected to outperform the energy sector in 2026, the current earnings downgrades may affect short-term investment decisions, particularly among companies with weaker earnings momentum.
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Analyst Views on IP
Wall Street analysts forecast IP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IP is 48.35 USD with a low forecast of 36.00 USD and a high forecast of 57.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 44.370
Low
36.00
Averages
48.35
High
57.80
Current: 44.370
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company provides sustainable packaging solutions. The Company is a global producer of renewable fiber-based packaging and pulp products. Its segments include Packaging Solutions North America, Packaging Solutions EMEA and Global Cellulose Fibers. Packaging Solutions North America and Packaging Solutions EMEA segments are primarily focused on producing fiber-based packaging. It produces linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of its production is converted into corrugated packaging and other packaging. Global Cellulose Fibers segment primarily focuses on producing cellulose fibers which is a renewable raw material used in a variety of products people depend on every day such as diapers, towel and tissue products, feminine care, incontinence and other personal care products. Its specialty pulps serve as a sustainable raw material used in textiles, construction materials, paints, coatings and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Webcast Access: Interested parties can listen to the webcast via the company's website under the Investors tab, enhancing interaction with investors and improving transparency and trust.
- Replay Availability: A replay of the webcast will be available approximately three hours after the presentation, ensuring that investors who cannot attend live can still access key information, thereby increasing information accessibility.
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- Webcast Availability: Interested parties can access the live webcast via the company's website under the Investors tab, enhancing interaction with investors and increasing transparency and trust.
- Replay Accessibility: A replay of the presentation will be available approximately three hours after the event, ensuring that investors who cannot attend live can still access critical information, thereby broadening the dissemination of key insights.
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- Earnings Outlook Decline: UBS analyst Anojja Shah now expects EBITDA to fall short of company targets in both 2026 and 2027, with estimates running below market consensus, indicating increased execution risk for the company.
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See More
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- Market Dynamics Observation: Changes in the overall market environment and economic data may also impact analysts' rating decisions, requiring investors to remain vigilant to address potential market risks.
See More
