Jefferies analyst Cole Hathorn downgraded the rating on ENCE Energia y Celulosa to a Hold today, setting a price target of €3.35.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Cole Hathorn has given his Hold rating due to a combination of factors affecting ENCE Energia y Celulosa. The primary concern is the current negative market dynamics and investor sentiment in the EU regarding pulp prices, which have not met the previously optimistic expectations. This has led to a cautious outlook as the timing for a recovery in demand and trade remains uncertain.
Additionally, the company’s earnings forecasts have been adjusted downward due to lower pulp prices and unfavorable foreign exchange conditions. While there is potential for long-term growth, particularly in the renewable energy division, the immediate need for a catalyst in pulp pricing is crucial for near-term outperformance. As a result, the price target has been lowered to reflect these uncertainties, maintaining a Hold rating until clearer signs of recovery emerge.