Jefferies cuts Ence to 'hold' as weak pulp market weighs

ENCE Energia y Celulosa SA

04/07/2025 07:28

** Jefferies cuts Spanish pulp and renewable energy producer Ence Energia y Celulosa ENC.MC to "hold" from "buy" due to delayed recovery of the weak pulp market

** It cites negative pulp market dynamics and EU stock sentiment from April/May, with recovery timing pushed out by demand, foreign exchange effects and trade uncertainties

** "We believe Ence needs a pulp recovery catalyst to outperform near term," the broker says

** Higher pulp prices would support earnings, growth capex, FCF and ultimately capital returns to investors, it adds

** Jefferies also lowers its PT by more than 9% to 3.35 euros

** Out of 10 analysts that cover Ence, eight rate it "strong buy" or "buy", one "hold" and one "strong sell" - LSEG data​​

 (Reporting by Marta Serafinko in Gdansk)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))