Goldman Sachs upgraded Suzano (SUZ) to Buy from Neutral with a price target of R$65, up from R$63. The firm believes that this is the right time to buy the stock as pulp prices are close to marginal cost, USD/BRL has depreciated by 11% in 2025, sector positioning is very light, and valuation is attractive with Suzano trading at 15%-17% free cash flow yield and 5.4x-4.6x enterprise value to expected EBITDA in 2026-2027 vs. its 10-year average at 10% free cash flow yield and 6.5x EBITDA, the analyst tells investors in a research note. The key downside is related to a more aggressive and prolonged oversupply that could keep hardwood pulp prices at or below marginal cost for longer than expected, the firm added.
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