Suzano (NYSE:SUZ) Shares Gap Down on Analyst Downgrade

Key Points

• Bank of America downgraded Suzano from a buy to a neutral and set an $11.00 price target, triggering a gap down (previous close $9.65, open $9.14) with the stock trading around $9.1050 and down roughly 5.9%.
• Analyst coverage is mixed but leans positive: MarketBeat shows a consensus of "Moderate Buy" with a $12.20 average target (1 Strong Buy, 2 Buy, 3 Hold).
• Suzano's fundamentals include a $11.27 billion market cap, a P/E of 4.82, a recent quarterly EPS beat ($0.02 vs. -$0.09 est.), and notable institutional buying from firms like Goldman Sachs, Jane Street and JPMorgan.

Shares of Suzano S.A. Sponsored ADR (NYSE:SUZ - Get Free Report) gapped down prior to trading on Tuesday after Bank of America downgraded the stock from a buy rating to a neutral rating. The stock had previously closed at $9.65, but opened at $9.14. Bank of America now has a $11.00 price target on the stock. Suzano shares last traded at $9.1050, with a volume of 2,607,202 shares changing hands.

SUZ has been the topic of a number of other research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Suzano in a research note on Friday, March 27th. Jefferies Financial Group assumed coverage on Suzano in a research note on Thursday, February 5th. They set a "buy" rating and a $13.40 price objective on the stock. Finally, Zacks Research lowered Suzano from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Suzano presently has an average rating of "Moderate Buy" and a consensus target price of $12.20.

Institutional Trading of Suzano

A number of hedge funds have recently added to or reduced their stakes in SUZ. Amundi acquired a new stake in Suzano in the 1st quarter worth about $177,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Suzano by 16.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,017 shares of the company's stock worth $93,000 after buying an additional 1,400 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Suzano by 14.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 557,366 shares of the company's stock worth $5,178,000 after buying an additional 70,396 shares during the last quarter. Jane Street Group LLC boosted its stake in Suzano by 264.1% in the 1st quarter. Jane Street Group LLC now owns 82,760 shares of the company's stock worth $769,000 after buying an additional 60,028 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in Suzano by 109.6% in the 2nd quarter. JPMorgan Chase & Co. now owns 245,695 shares of the company's stock worth $2,312,000 after buying an additional 128,455 shares during the last quarter. 2.55% of the stock is owned by institutional investors and hedge funds.

Suzano Trading Down 5.9%

The business has a 50 day simple moving average of $10.28 and a 200-day simple moving average of $9.59. The company has a current ratio of 3.18, a quick ratio of 2.59 and a debt-to-equity ratio of 2.27. The stock has a market capitalization of $11.27 billion, a price-to-earnings ratio of 4.82, a price-to-earnings-growth ratio of 0.20 and a beta of 0.73.

Suzano (NYSE:SUZ - Get Free Report) last issued its quarterly earnings results on Wednesday, February 11th. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.09) by $0.11. Suzano had a return on equity of 30.84% and a net margin of 26.11%.The firm had revenue of $2.38 billion for the quarter, compared to analyst estimates of $2.30 billion. On average, equities analysts predict that Suzano S.A. Sponsored ADR will post 1.93 earnings per share for the current year.

Suzano Company Profile

Suzano SA is a Brazil-based pulp and paper company recognized as one of the world's leading producers of eucalyptus pulp. The company develops and supplies a wide range of fiber-based products that serve global demand in printing and writing papers, tissue paper, packaging, and specialty paper markets. With an extensive network of industrial units and logistics operations, Suzano manages every stage of production from forest plantations to final delivery, emphasizing integrated operations and quality control.

At the core of Suzano's business is its sustainable forestry model, which covers more than one million hectares of managed eucalyptus plantations across Brazil.

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