Suzano S.A. SUZ has successfully finalized the acquisition of a 15% stake in Lenzing from majority stakeholder B&C Group BGC, heralding a new chapter in its business trajectory. This strategic move is poised to magnify Suzano’s footprint across burgeoning markets.
Insight into Suzano’s Pact with B&C
Back in June 2024, Suzano and B&C inked a partnership agreement to jointly retain a 52.25% stake in Lenzing, the renowned Vienna-based provider of cellulosic fibers. Under this arrangement, Suzano secures a 15% ownership in Lenzing, while B&C retains the lion’s share at 37.25% and retains control of the freshly minted syndicate.
In addition to the 15% ownership stake, Suzano also earned the privilege of nominating two individuals to Lenzing’s board of directors.
The long-term alliance empowers Suzano with the option to further acquire an additional 15% stake in Lenzing from B&C by 2028.
A Move Set to Elevate Lenzing & Suzano’s Standing
Lenzing operates as a global titan in the supply of top-tier cellulosic fibers catering to both the textile and non-woven sectors. This transformative transaction reinforces Lenzing’s supremacy as a global front-runner in sustainable cellulosic fibers. Suzano aims to bolster Lenzing’s position leveraging its cutting-edge technology, diverse product portfolio, and profound technical acumen.
Suzano is poised to leverage Lenzing’s profound domain expertise in pulp production and operational efficiency. This symbiotic partnership stands to fortify Suzano’s competitive position and expand its reach worldwide.
This acquisition stands as a testament to Suzano’s overarching strategy to channel investments towards broadening its addressable market via scalable and competitive business models. The investment represents a significant stride in closing the gap to the ultimate end consumer.
Suzano’s Q2 Performance in Focus
During the second quarter of 2024, Suzano reported a notable surge in net sales to $2.2 billion, up from $1.8 billion in the corresponding quarter of the previous year. Despite this uptick, the company witnessed an adjusted loss of 56 cents in the same period, in stark contrast to the 79 cents earned in the year-ago quarter.
Suzano Share Price Trajectory
Over the past year, Suzano’s shares have dipped by 3.7%, a trend misaligned with the broader industry’s growth of 32.7%.
Image Source: Zacks Investment Research
Zacks Rank & Promising Stocks to Consider
As of now, SUZ holds a Zacks Rank #3 (Hold).
Within the basic materials arena, stand-out performers include Carpenter Technology Corporation CRS, IAMGOLD Corporation IAG, and Eldorado Gold Corporation EGO. Presently, CRS, IAG, and EGO boast an impressive Zacks Rank #1 (Strong Buy).
The consensus estimate projects Carpenter Technology’s fiscal 2025 earnings to hit $6.06 per share. Over the past 60 days, the consensus estimate for 2025 earnings has surged by 17%. The average trailing four-quarter earnings surprise stands at a robust 15.9%. CRS shares have surged by a staggering 155.9% over the last year.
IAMGOLD’s 2024 earnings are anticipated to clock in at 39 cents per share, based on the Zacks Consensus Estimate. In the previous 60 days, the consensus estimate for 2024 earnings has climbed by 44%. IAMGOLD boasts an average trailing four-quarter earnings surprise of an impressive 200%. IAG shares have soared by 137% over the past year.
Eldorado Gold is pinned to achieve 2024 earnings of $1.32 per share as per the consensus estimate. Over the past 60 days, the consensus estimate for 2024 earnings has risen by 22%. Eldorado Gold has delivered an impressive average trailing four-quarter earnings surprise of 430%. EGO shares have appreciated by 103% in the last year.
