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.