Citi Upgrades Aracruz Celulose S.A. (ARA) and Votorantim Celulose e Papel S.A. (VCP)

August 21, 2007 7:37 AM EDT

Citi upgrades Aracruz Celulose S.A. (NYSE: ARA) and Votorantim Celulose e Papel S.A. (NYSE: VCP) from Hold to Buy.

Citi analyst says, "We are upgrading our ratings on Aracruz, Suzano, and VCP to Buy from Hold, as the recent pull back represents an attractive entry point. In the short term, we should continue to see volatility due to increased risk aversion and expected lower pulp prices in 2008. However, LT industry fundamentals have not changed, and these companies are well positioned to continue to gain pulp market share globally. VCP is our top pick at this point. We advise investors to increase positions in these shares in order to participate in this LT growth"

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