UPDATE: J.P. Morgan Upgrades Fibria Celulose SA to Overweight, Raises PT on Weaker BRL Outlook

In a report published Wednesday, J.P. Morgan analyst Lucas Ferreira upgraded the rating on

from Neutral to Overweight, and raised the price target from $12.00 to $14.00. In the report, J.P. Morgan noted, “We like Fibria's disciplined approach toward capacity growth and focus on deleveraging, and we estimate the company should generate a 5-7% FCF yield in the next two years. Fibria's efforts to reduce costs, SG&A, and capex and to improve capital structure have been remarkable, in our view, and we should continue to see deleveraging. Despite our relatively cautious approach to pulp prices, our Overweight rating is supported by our belief that Fibria is the cheapest and most effective vehicle to add exposure to a weaker BRL outlook within LatAm Forestry.” Fibria Celulose SA closed on Tuesday at $11.22.