INSUBCONTINENT EXCLUSIVE:
The new target price still suggests a potential 30% upside, indicating optimism despite short-term concerns.Analysts Lucas Ferreira and
Froylan Mendez believe sugar prices are showing signs of recovery
They expect ethanol to benefit from price increases due to tighter supply conditions.The bank remains bullish on both sugar and ethanol
(Photo Internet reproduction)J.P
This realization has led to a reevaluation of the expected 42 million-ton sugar production
Lower global production is likely to drive prices upward.Ethanol Market OutlookAnalysts are cautiously optimistic about ethanol prices
They believe a longer off-season period could further tighten the supply-demand balance
off-season, potentially pushing ethanol prices higher
If prices exceed R$2.80 per liter, J.P
Morgan may revise their projections upward.This could lead to an adjusted EBITDA near R$4 billion in the best-case scenario
additional investments to preserve productivity are estimated at R$70 ($13) million
This figure is relatively low compared to their $2 billion capex.On the downside, sugar and ethanol prices have been low year-to-date
of 17% when excluding capex
