Suzano S.A. advanced 3.3% on Monday, closing at R$46.47, after Bank of America Securities upgraded its recommendation from Neutral to Buy and raised its price target from R$51 to R$66 per share.
The pulp and paper giant’s stock reached an intraday high of R$46.98, paring losses from its 52-week peak of R$59.65, which remains 22% above current levels. The upgrade follows a prior downgrade in April, when BofA cited concerns over a structurally oversupplied global pulp market and falling prices.
Analysts now expect demand to improve starting in September, with production costs projected to decline significantly in the second half of 2026. Suzano’s full-year cost guidance for 2026 stands at approximately R$800 per ton, down from R$820–825 per ton recorded in the first half of the year.
The upgrade coincides with macroeconomic tailwinds for the company, as a potential weakening of the Brazilian real ahead of the presidential election cycle could benefit earnings, given that the majority of Suzano’s revenues are denominated in U.S. dollars. Brazil’s Focus Report maintained its 2026 IPCA inflation forecast at 5.02%.
