UBS Negative on Pulp & Paper

UBS Negative on Pulp & Paper


After equity outperformance, UBS Pactual is negative on pulp and paper and has downgraded VCP and Aracruz to sell from neutral, Suzano to neutral from buy, and predicts asset sales. It also maintains a sell rating on Klabin. The cut comes after VCP and Aracruz’ stock soared more than 60% from recent lows and after Suzano equity gained 40% from recent lows. “Short-term, the companies will struggle with inadequate capital structures. We believe asset sales could be considered, and see room for equ

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