UPDATE: Scotia Capital Markets Raises PT to $9.50 on Fibria Celulose SA; Pulp Prices Bottomed, Moving Up

Scotia Capital Markets raises its one-year price target on Fibria Celulose SA FBR from $9 to $9.50. Scotia Capital Markets notes, "The R$77M EBITDA variance versus our estimate stems primarily from lower-thanexpected net realized prices (R$45M, including a less favourable geographic mix) and higher-than-expected manufacturing and other costs (R$32M). Pro forma the R$1.3B equity offering, net debt was R$7.4B (4.3x EBITDA or 34% of capital). The company is looking to sell other non-strategic forestry assets in 2012 to further improve the balance sheet. After declining 20%-30% from their peaks in June 2011, list eucalyptus pulp prices bottomed in December and have begun moving up. Fibria announced price increases of US$40/tonne for Europe and N.A., and US$30/tonne for Asia for May." FBR closed at $7.10 on Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetReiterationIntraday UpdateAnalyst RatingsScotia Capital Markets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!