Suzano 3Q25: Results Soft but Broadly In Line with Expectations

Upgrade on 2031s following improved relative value, we see healthier pulp prices and cost discipline supporting gradual margin recovery

We maintain our Overweight recommendation on Suzano (Baa3/BBB-/BBB-) 2029 and 2036 notes, and we upgrade the 2031 notes to Overweight following their 21 bps spread widening since our last downgrade. The 2031s now trade above the company’s debt curve, offering a more compelling carry-to-duration profile and more attractive relative value compared to LatAm BBB peers. We maintain a Neutral recommendation on the rest of Suzano’s curve.