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ARA.N

ISIN: US0384962041
SEDOL: 2058579

Rating:

SELL

Target Price:

7.54 USD

Investment Horizon:

6 to 12 months
17th Jul 2009 View Report   Download

2Q 09 News Alert

Aracruz Celulose S.A. (Aracruz) announced its 2Q 09 results1 on 16 July 2009, reporting a sharp rise in earnings. However, excluding exceptional items, the picture is less rosy, with the pressures of large debts and falling pulp prices. Considering Aracruz’s debt burden and the significant rise in the ADR price in recent weeks, we now view the company as significantly overvalued. Therefore, we maintain our 6-12 month SELL rating....

15th May 2009 View Report   Download

1Q 09 News Alert

Aracruz Celulose S.A. (Aracruz) announced its 1Q 09 results on 14 May 2009, revealing greater-thanexpected net losses. Considering the current pricing and demand scenario for pulp, we expect to keep our target price at a low level when we revalue the company in our next update report. Therefore, at current levels, we maintain our 6-12 month SELL rating. We will reassess our ADR (1 ADR = 10 preferred shares) rating in our next update report....

27th Apr 2009 View Report   Download

Company News Alert

The Aracruz Celulose S.A. (Aracruz) ADR has appreciated significantly since our last update report, reflecting growing investor confidence amid speculation that the pulp market has bottomed out. Despite this, we remain concerned about the company’s financial position, which remains precarious. Therefore, we maintain our 6-12 month SELL rating for the ADR. We will reassess our ADR (1 ADR = 10 Brazilian preferred shares) rating after the company…

20th Apr 2009 View Report   Download

4Q 08 Update Report

We view the proposed merger of Aracruz and VCP as a positive for Aracruz, as it diminishes the imminent bankruptcy risk faced by Aracruz. However, Aracruz’s large debt will weigh heavily on the merged entity. Nevertheless, considering the deep pockets of Votorantim Group, promoters of VCP, we expect that the combined entity will be able to meet its financial obligations. The merged entity will be the global…

6th Apr 2009 View Report   Download

Company News Alert

On 03 April 2009, the Aracruz Celulose S.A. (Aracruz) ADR reached our target price. Given that our fundamental outlook remains unchanged, we believe that the ADR’s upside potential has now been exhausted. We therefore moderate it from a BUY to a HOLD. We will reassess our ADR (1 ADR = 10 Brazilian preferred shares) rating for Aracruz in our next full update report....