International Paper Gets Wells Fargo Upgrade: What IP Investors Should Know

Wells Fargo has taken a more constructive stance on International Paper, lifting its rating on January 30, 2026. This upgrade for the major paper and packaging company reflects changing sentiment among Wall Street’s major institutional players and analysts. The investment community appears increasingly optimistic about IP’s prospects, supported by strong positioning from some of the world’s largest asset managers.

Analyst Lifts Rating and Projects 21% Upside for IP Shares

The Wells Fargo analyst team upgraded their assessment of International Paper from Underweight to Equal-Weight status, signaling a shift toward a more neutral stance on the company. More compelling for investors: the average one-year price target stands at $48.78 per share as of January 13, 2026, suggesting meaningful appreciation potential from the latest closing price of $40.31 per share.

This represents a projected upside of 21.01%, with analyst forecasts ranging from a conservative $36.36 to an optimistic $60.69 target. The wide range of estimates reflects the market’s differing views on the company’s trajectory. Despite projections showing a 3.52% decline in annual revenue to approximately $22.8 billion, the non-GAAP earnings per share forecast of $3.61 continues to attract investor attention.

Institutional Portfolio Positioning Signals Strong Bullish Momentum

The institutional investment community maintains robust interest in IP shares. Currently, 1,510 funds and institutions report positions in the company, though this represents a decrease of 222 holders from the previous quarter. However, despite fewer institutions holding the stock, the average portfolio weight dedicated to International Paper increased 8.89% across all institutional investors, reaching 0.24% of typical investment portfolios.

Notably, the put/call ratio of 0.73 indicates decidedly bullish market sentiment. This options market signal suggests that traders and investors expect the stock price to appreciate, providing technical confirmation for the positive analyst upgrade. Institutional shareholdings decreased modestly by 0.66% to 679.1 million shares outstanding in recent months, yet the concentration of holdings among major asset managers suggests institutional confidence remains solid.

Major Shareholders Intensify IP Holdings Amid Market Opportunity

The investment positioning data reveals compelling insights about how leading institutional investors view International Paper’s investment case:

T Rowe Associates, one of the world’s largest investment managers, now holds 66.2 million shares representing 12.54% ownership. This represents a significant increase from their prior 53.8 million-share position, marking an 18.80% increase in holdings. The firm dramatically expanded its portfolio allocation in IP by 15.24% over the last quarter.

Capital Research Global Investors maintains the second-largest institutional stake with 54.3 million shares (10.29% ownership), up from 50.6 million shares previously held. The firm’s 6.94% increase in holdings indicates sustained confidence, though their portfolio weighting decreased marginally by 0.23% as the firm managed overall investment exposure.

Capital International Investors demonstrates particularly aggressive positioning, holding 49.0 million shares representing 9.28% ownership. This marks a substantial 33.93% increase from their previous 32.4 million-share position—one of the most aggressive expansions among major holders. The firm dramatically increased its allocation to IP by 40.54% in a single quarter.

Additional major holders show similar conviction: American Mutual Fund increased holdings by 14.29% to 41.8 million shares (7.92% ownership) while expanding portfolio allocation by 9.77%. Washington Mutual Investors Fund posted particularly striking moves, jumping from 10.6 million to 19.5 million shares—a 45.76% increase—while boosting its IP allocation by 72.53% over the quarter.

What This Means for IP Investors

The combination of Wells Fargo’s upgrade, analyst price target upside, and concentrated buying by some of the world’s most sophisticated institutional investors creates a compelling picture. While revenue headwinds remain a concern, the investment positioning data suggests that major institutional players see opportunity in International Paper’s valuation and prospects. For investors considering IP positions, this institutional activity and analyst support warrant serious consideration.