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Investing.com - Jefferies initiated coverage on Brazilian integrated pulp producer Klabin SA (KLBN11:BZ) (OTC:KLBAY) with a Buy rating and a price target of R$25.00. According to InvestingPro data, the company maintains a healthy 4.7% dividend yield and has consistently paid dividends for 24 consecutive years.
The research firm stated that the market underappreciates Klabin’s integrated, low-cost business model and its strategic shift toward premium products.
Jefferies believes these factors will enable Klabin to navigate challenges in the global pulp market more effectively than its competitors and achieve faster deleveraging than current market expectations suggest.
The firm noted that Klabin currently trades at 6.0x EV/EBITDA for 2026, representing a 27% discount compared to its peers.
Jefferies described this valuation as "compelling given the quality of the business," highlighting the disconnect between the company’s fundamental strengths and its current market valuation.
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