Brazilian stocks Suzano, Embraer, and WEG rise amid Ibovespa decline

Following the victory of Luiz Inácio Lula da Silva in the Brazilian presidential election, the Ibovespa index fell 16.44% to 171,367 points. Amid this market downturn and a surging US dollar, several companies with significant international revenue exposure saw gains.

Suzano (SUZB3) led the gains with an 8.82% increase, benefiting from the conversion of foreign currency revenues into reais. Embraer (EMBJ3) and WEG (WEGE3) also rose by 6.93% and 6.72%, respectively. While the stronger dollar favors exporters, analysts note that it may also increase costs for inputs and expenses linked to the American currency.

Citi has maintained a buy recommendation for Suzano despite lowering its price target from R$ 65 to R$ 52 due to conservative short-term pulp price outlooks. Analysts suggest Suzano remains a defensive option because its currency exposure can bolster results during periods of real devaluation.