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AAA, Goldman Sachs Upgrade Fibria Celulose to BUY Rating
AAA, Goldman Sachs Upgrade Fibria Celulose to BUY Rating
Analysts have issued a research note to investors today, 4 April 2011, announcing that they have upgraded shares in Fibria Celulose S.A. (NYSE: FBR) to "buy".
MA,
Boston,
United States
(pr4links.com)
06/04/2011
Boston, Mass, April 06, 2011 -- Analysts have issued a research note to investors today, 4 April 2011, announcing that they have upgraded shares in Fibria Celulose S.A. (NYSE: FBR) to "buy".
Goldman Sachs had previously upgraded the eucalyptus firm’s stocks to "neutral" from "underweight" earlier in February this year.
"This latest upgrade reflects a wider trend for greater interest in alternative assets as investor seek out lower-risk options that are less volatile than stocks and shares," explained AAA partner Anthony Johnson.
Fibria Celulose S.A. is a Brazil-based pulp producer specializing in eucalyptus. It produced 4,789 kilotons of eucalyptus pulp in 2009 from land space totalling 1,043 million hectares. AAA explained that the firm has diversified land spread over six states in Brazil, including 393.4 thousand hectares of land that doubles as wildlife conservation areas, increasing the environmental kudos that investing in the firm carries.
The business produces its pulp at three mills: the Aracruz pulp mill, the tres Laoas pulp mill and the Jacarei pulp mill, which produce 2.3 million tons, 1.3 million tones and 1.1 million tons respectively.
"Eucalyptus pulp is a major growing industry in Brazil following a ruling in 2009 outlawing the use of coking coal in the country’s steel industry," explained AAA’s Anthony Johnson. Eucalyptus has since been regarded as the best alternative and demand has soared as a result.
In addition to the legislation, another factor boosting demand for eucalyptus wood is a ruling from the Action Plan for Prevention and Control of Deforestation in Cerrado, which will come into effect in 2013. "In an extension to Brazil’s Central Bank’s Resolution 3545, companies will soon be prevented from buying charcoal produced using native Cerrado ecosystem trees. Any that do after 2013 will no longer be able to apply for credit from the bank and, as a result, charcoal made from plantation-sourced trees is in extremely high demand," added the AAA analyst.
Investing in Brazilian forestry plantations and particularly in the products that benefit from the introduction of the Central Bank’s rules on charcoal, has become a no-brainer for many fund managers, claimed the AAA, whose partners have a wealth of fund management and alternative asset analysis experience.
Fibria Celulose, alongside other plantation management firms such as Greenwood Management – which manages plantations of Acacia and other popular timbers – are an understandably popular place to invest at this point in time, explained Johnson.
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-898-6317
info@alternativeassetanalysis.com
http://www.alternativeassetanalysis.com
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