Truist upgraded International Paper Company (NYSE:IP) from Hold to Buy and has raised the price target from $30 to $43 per share in a note to clients. According to the analysts, the containerboard market has broken free from its constraints, and they are optimistic now that the trough has been reached.

The analysts believe the containerboard market is at a turning point, ready for recovery due to improving demand after destocking and more balanced inventories. Despite the slow absorption of new containerboard supply, economic growth, and rising demand should counteract this, leading to stable pricing.

Truist considers IP the preferred stock for participating in this market recovery, citing greater operating leverage and more potential upside compared to peers.