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