Suzano Shares Face Analyst Downgrade Amid Strategic Partnership Progress

Shares of Brazilian pulp and paper producer Suzano are experiencing near-term valuation pressure following a recent rating adjustment. This shift in sentiment comes even as the company advances a significant strategic alliance with Kimberly-Clark.

On Thursday, Zacks Research revised its stance on Suzano, moving its rating from "Strong Buy" to "Hold." This change signals a more cautious outlook in the short term, despite the firm's continued dominant position within its market. The stock concluded the week trading at approximately $9.24, consolidating within its 52-week range of $8.41 to $10.98.

The downgrade follows the company's latest quarterly results, which presented a mixed picture. For the third quarter, Suzano reported revenue of $2.27 billion, surpassing expectations of $2.23 billion. However, its earnings per share (EPS) came in at $0.29, missing the projected $0.32.

Institutional Activity Contrasts Analyst View

A divergence in market perspective is evident when examining institutional behavior. American Century Companies Inc. notably increased its stake in Suzano during the second quarter of 2025, boosting its holdings by 36.2%. The institution now possesses roughly 1.59 million shares valued at about $15 million. This sustained institutional interest, contrasting with the analyst downgrade, highlights differing assessments of the stock's immediate trajectory versus its fundamental long-term value.

Should investors sell immediately? Or is it worth buying Suzano?

Currently trading at a P/E ratio of 9.6, the equity is valued with a notable discount, reflecting market skepticism. Investors are now awaiting clearer signals from the company's ongoing joint venture integration, which is expected to influence its medium-term outlook.

Long-Term Strategic Development Underway

Concurrent with these short-term analyst movements, substantive corporate development is progressing. On December 4, Kimberly-Clark submitted an update to the U.S. Securities and Exchange Commission (SEC) regarding its global joint venture with Suzano. This partnership merges Kimberly-Clark's International Family Care and Professional business with Suzano's consumer tissue division.

The regulatory filing provides further detail on the operational integration of these assets. The core strategic aim of the alliance is to leverage Suzano's efficient pulp production capabilities with the established brand strength of Kimberly-Clark. This venture continues to be viewed as a primary fundamental driver for investors with a longer-term horizon.