BofA Securities upgraded Suzano S.A. to Buy from Neutral, citing stabilizing pulp prices and stronger-than-expected second-quarter earnings. The firm raised its price target to $13.00 from $10.00, representing a 30% premium to the stock’s last close of $8.78.
Analyst Caio Ribeiro noted that pulp prices have likely bottomed, with order books improving in July and remaining robust through August. Low buyer inventories and seasonal demand strength from September are expected to underpin a recovery in pricing. BofA lifted its hardwood pulp price forecast to $550 per ton from $520 per ton, and raised its 2026 China hardwood pulp price projection to $581 per ton from $563 per ton.
Suzano reported adjusted earnings per share of $0.2822 for Q2 2026, exceeding analyst expectations of $0.2501. Revenue totaled $2.24 billion, slightly below the $2.34 billion estimate. The company highlighted strong cash generation, disciplined cost management, and solid operating performance as key drivers of its earnings beat. Management also expressed optimism for a more constructive second half of the year.
