** 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

(Reporting by Anshuman Tripathy)

((Anshuman.Tripathy@thomsonreuters.com))