Suzano (SUZB3) cuts cellulose production in 2024 due to 'complex timing and adequate return'; see – Money Times


suzano suzb3

According to the company, the volume would not bring an adequate return (Photo: Disclosure/Suzano)

A Suzano (SUZB3) said that its cellulose production volume in 2024 (excluding Cerrado) will be 4% below its nominal production capacity.

The decision was taken since, according to the company, the volume would not bring adequate returns for Suzano at a time when the pulp market is more complex.

According to the company, the change in its production volume will not impact the service of already contracted customers, as well as suppliers.

“It is worth noting that the operation of the Ribas do Rio Pardo Unit (previously called Cerrado Project) continues as expected and already announced to the market, with a production volume of 900 thousand tons remaining planned for the year 2024”, says Marcelo Feriozzi Bacci , executive director of Finance and Investor Relations.

Suzano (SUZB3) and Klabin: JP Morgan raises target prices and recommendation

In September, JP Morgan raised its recommendation for the company's shares Klabin (KLBN11) from equalweight (neutral) to overweight (buy) and raised the target price from R$25 to R$28.

As for Suzano, the bank maintained its purchase recommendation, but also raised the target price for the share from R$77.50 to R$80.50 for 2025.

The purchase is maintained due to strategic growth, strong long-term prospects and valuation attractive.

For JP, Suzano stands out through strategic capacity additions, driving volume growth and reducing costs, especially with its competitive Cerrado project.

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See Suzano's statement

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