Fibria Celulose upgraded to Overweight from Neutral at JPMorgan. JPMorgan analyst Lucas Ferreira upgraded Fibria Celulose to Overweight and raised his price target for the shares to $13.50 from $10 to reflect a more positive short and mid-term view on pulp prices. Improvements in both the demand and supply outlook materially decrease the probability of a sustainable pulp price sell off, the analyst tells investors in a research note.
Shares of several paper and packaging companies briefly moved higher after news that Brazil's Fibria Celulose (FBR) is set to raise prices for its pulp, potentially in response to favorable inventory and demand levels. PULP PRICE HIKE: According to a company statement obtained by Dow Jones, Fibria will raise its pulp prices by $30 per ton, effective March 1. The raise applies to North America, Europe and Asia, with Fibria's North American prices set to reach $920 per ton. In its coverage of the news, Dow Jones noted that "the combination of low inventories and high demand paves the way" for the price hike. PRICE ACTION: Shares of Packaging Corp Of America (PKG), International Paper (IP) and KapStone Paper and Packaging (KS) each briefly showed gains in excess of 1% after the news Monday afternoon.