Jefferies downgrades Ence Energia y Celulosa stock to Hold on pulp market concerns

Published 04/07/2025, 06:46
Jefferies downgrades Ence Energia y Celulosa stock to Hold on pulp market concerns

Investing.com - Jefferies downgraded Ence Energia y Celulosa SA (BME:ENC) from Buy to Hold and lowered its price target to EUR3.35 from EUR3.70, citing deteriorating pulp market conditions.

The investment firm had previously upgraded the Spanish pulp and renewable energy company in November 2024, based on expectations of positive pulp price trends extending into 2025 that have not materialized as anticipated.

Jefferies noted that while Ence’s renewable energy division maintains ambitions to more than double its EBITDA to over EUR130 million in the mid-term, current pulp market dynamics and European stock sentiment remain negative.

The downgrade reflects Jefferies’ view that recovery timing has been delayed due to demand uncertainty, foreign exchange challenges, and trade concerns in the pulp sector.

Jefferies concluded that Ence will need a catalyst in the form of pulp market recovery to outperform in the near term, leading to the more cautious Hold rating.

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