International Paper, Packaging Corp of America fall after brokerage trims rating

Shares of International Paper IP.N fall 1.5% to $44 after Wells Fargo downgrades rating to "underweight" from "equal weight"; cuts PT to $40 from $45, a 11% downside to stock's last close

Brokerage says it believes IP's 2025 forecast is "unreachable in an environment where both corrugated vols and pricing turn negative, with shares still pricing in its achievement"

Last month, IP missed Q1 results estimates on weak demand amid economic uncertainty

Brokerage also downgrades Packaging Corp of America PKG.N to "equal weight" from "overweight"; cuts PT to $180 from $205, still a 11% upside from stock's last close

PKG shares down 2% to $179

"Though we continue to view PKG as a best-in-breed, we expect both downward revisions to estimates and multiple pressure owing to worsening industry fundamentals," says brokerage

Last month, PKG forecasts Q2 profit below estimates amid tariff-driven demand slowdown

As of last close, IP down 16.5% and PKG down 18.5% YTD