Shares of International Paper Co. and Packaging Corp. of America slumped Monday, after Citigroup downgraded them to neutral, after trade publication Pulp & Paper Week cut January prices for kraftliner and corrugated medium, two kinds of containerboard. "While the medium price erosion is not surprising, we were surprised by the kraftliner price cut given commentary on "stronger than expected" December box shipments, high op rates (95.6% in 2015), and recent supply discipline by major producers," Citigroup analysts wrote in a note. Analysts lowered their 2016 to 2018 estimates for the two companies, as well as for rival WestRock Co. . IP shares fell 9.8% in afternoon trade, and Packaging Corp. was down 12%.
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