Higher pulp prices drive EBITDA upgrades for Ence, Jefferies ups to 'buy'

ENCE Energia y Celulosa SA

23/04/2024 09:16

** Jefferies raises Ence  ENC.MC  to "buy" from "neutral",
saying high pulp prices should help the Spanish pulp and
renewable energy producer return capital to shareholders
    ** Shares in Ence rise 5% and are on track for best day in
over a year
    ** Jefferies expects structurally higher pulp EBITDA/tonne
of more than 155 euros from 2024 onwards vs the 2014-23 period
average 
    ** This implies over 160 million euros ($170.78
million)absolute mid-cycle EBITDA vs 130-140 million euros
historically, the broker says
    ** The broker raises 2024 EBITDA forecast for Ence by 26% to
253 million euros vs 183 mln euros seen in Factset consensus 
    ** Into 2025, Jefferies raises EBITDA by 8% to 243 million
euros vs 198 million euros in consensus
    ** Ence reported on Monday a first quarter net profit of 7.9
million euros, below 12.6 million euros a year ago, but above
3.5 million euros in the fourth quarter
    ** Out of 10 analysts that cover Ence, nine rate the stock
"strong buy" or "buy"​ and one analyst rates it "hold" 

($1 = 0.9366 euros)


($1 = 0.9369 euros)

 (Reporting by Joao Manuel Mauricio)
 ((JoaoManuel.VicenteMaurucio@thomsonreuters.com))