A Susano (SUZB3) concludes its share buyback program that started on January 30 of this year. In total, the company bought 20 million shares at an average price of R$44.02, lower than Friday’s (7) closing price of R$44.51.
the program of repurchase of Suzano shares had been communicated to the market in mid-October 2022.
In total, the repurchase totaled R $ 880 million in shares of the company.
After this program ended in January 2023, the company reported that it had 34,765,600 common shares of its own.
The bank recommends the purchase of Suzano shares, with an eye on the Chinese market
With expectations of a stabilization of wood pulp prices, BTG Pactual has maintained its buy recommendation Suzano shares.
It’s a similar stance to the Itaú BBA, which indicated industry preference for the company in a report released this week.
According to BTG, there has been a significant decline in recent months pulp pricesreaching a low of less than US$500 per tonne.
However, due to price increases for Suzano and demand from Chinese players, who are rebuilding inventories, the BTG team expects prices to stabilize just above US$500 per ton.
Another point made in the report is that Suzano’s shares trade at low multiples, approximately 6.5 times the company’s value (EV) in relation to EBITDA, earnings before interest, taxes, depreciation and amortization.
BTG says investors are taking a pessimistic view of the Cerrado project and its possible outcomes. The venture involves expanding Suzano’s pulp manufacturing operations into the Cerrado region, located in the central-west of the country.
“The market is pricing the Cerrado project negative and is discounting an implied curve of US$510/t pulp, which makes little economic sense (prices well below marginal cost of production),” adds the bank on the Susano.
Source: Terra
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