UPDATE: Citigroup Upgrades Fibria Celulose to Neutral on Balanced Risk/Reward

Citigroup raises its price target on Fibria Celulose

from Sell to Neutral (both high risk), but reduces its price target from $8.30 to $7.10. Citigroup says, "With Fibria shares down 25% YTD (vs -12% for the MSCI Brazil) we believe current valuations (7.4x EV/EBITDA) are correctly reflecting our cautious outlook for pulp fundamentals. We find less downside risk at current levels as the recent weakness in the BRL should provide support to earnings in the coming quarters; however, we do not yet feel compelled to build a position in FBR given 1) the expected pressure in pulp prices during 2H12 and 2) Fibria's stretched balance sheet." FBR closed at $6.01 on Monday.