Goldman Sachs analyst Brian Maguire downgraded International Paper (IP) to Sell from Neutral with an unchanged price target of $40.

The stock closed Monday up 16c to $47.42.

The analyst has concerns over containerboard pricing in 2020 as well as earnings risks at other parts of the company's business. In the last three months, International Paper shares have outperformed the market despite downward revisions to 2020 consensus estimates, Maguire tells investors in a research note. As a result, the company's valuation level is now in line with its historical average, despite heightened risk of containerboard price cuts, says the analyst. With his expectation for an 8.4% increase in North American capacity to enter the market starting in 2020 and weak demand from a slowing industrial economy, Maguire believes there will be further containerboard price cuts in 2020.

The analyst this morning also downgraded Packaging Corp. of America (PKG) to Sell.