Decent researchhttps://researchxp1.s3.sa-east-1.amazonaws.com/202212_XP+IoC+Suzano+%2B+Update+Klabin+e+Irani_ENG.pdf
We are initiating coverage of Suzano with TP72.9 SUZ B3.
Suzano is a Market leader(~30%BHKPshare),lowest-cost producer, with strong ESG credentials.We see free options embed at current valuations:(i)the Cerrado project to start-up in2024(+23%increase in mktpulp capacity),and:(ii)a large agenda of innovation related to bio-productsthatshouldstarttocommerciallyunfoldinthenextfewyears.
Thecompanylookscheaponseveralmetrics:weseeittradingat5.6xEV/EBITDA2023andanEV/capacity~ USD 2,000/kpy,~18%below last five years real average