Update shared on 04 Dec 2025
Fair value Decreased 1.39%Analysts have modestly reduced their price target on Suzano, trimming fair value by about $1.03 to roughly $72.84. This reflects slightly lower expectations for revenue growth and profit margins even as they factor in a higher future P E multiple.
What's in the News
- Suzano signed a Memorandum of Understanding with Tencent and the Ecofuturo Institute to develop new digital approaches that boost public engagement in environmental conservation in Brazil and China (Key Developments).
- The partnership will pilot the use of Tencent's AI based species recognition tools to identify and monitor native species at Neblinas Park and other conservation areas managed by Ecofuturo (Key Developments).
- Planned initiatives include immersive nature education programs and interactive digital platforms designed to enhance ecological awareness and promote innovative nature education (Key Developments).
Valuation Changes
- Fair Value: Trimmed slightly from R$73.86 to R$72.84, reflecting a modest downward adjustment in intrinsic valuation.
- Discount Rate: Risen marginally from 26.59 percent to 26.73 percent, implying a slightly higher required return for Suzano's equity risk profile.
- Revenue Growth: Lowered from 10.27 percent to 9.44 percent, indicating slightly more conservative expectations for top line expansion.
- Net Profit Margin: Reduced from 14.96 percent to 13.55 percent, pointing to a more cautious view on future profitability.
- Future P/E: Increased from 17.88x to 19.98x, suggesting the market is expected to assign a somewhat higher earnings multiple despite softer fundamentals.
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