Lenzing Wins Analyst Upgrade as Suzano Adds Shares and Heiligenkreuz Buyer List Nears Cut

Deutsche Bank Research lifted its price target on Lenzing from EUR 12.70 to EUR 14.30 yesterday, keeping a "Hold" rating on the Austrian fibre maker. The broker pointed to stronger underlying profitability in the third quarter, though it made clear the recovery is not yet complete.

The upgrade lands alongside a pair of disclosures that frame Lenzing's current position: a modest direct share purchase by Suzano and a narrowing field of bidders for the Heiligenkreuz plant.

Margin edges higher as restructuring bites

For the first nine months of 2026, Lenzing's adjusted EBITDA margin reached 18.3%, up from 17.9% a year earlier. Revenue, however, slipped to EUR 1.93 billion from EUR 1.97 billion in the same period of 2025.

Adjusted EBITDA came in at EUR 353 million. Reported EBITDA stood at EUR 316.4 million, dragged down by EUR 36.6 million in restructuring charges. The bottom line remained in the red, with a loss after tax of EUR 130.3 million.

Management reaffirmed its full-year 2026 guidance for adjusted EBITDA of between EUR 430 million and EUR 460 million.

Suzano tops up its stake

In an update on its shareholder structure following the capital increase completed roughly three weeks ago, Lenzing reported a direct purchase of shares by Suzano Holding S.A. covering about 0.80% of the company's stock.

The syndicate formed by the B&C Group and Suzano S.A. continues to hold approximately 52.25% of voting rights, according to the company.

Heiligenkreuz field to be whittled down

Attention is also turning to the fate of the Heiligenkreuz site. As part of its nine-month results, Lenzing announced it would halt production there by the end of the first quarter of 2027, with output at Grimsby scheduled to end by the close of 2027.

Austrian broadcaster ORF reported that production at Heiligenkreuz will continue until the end of March 2027. Around 30 interested buyers have come forward, and the shortlist is expected to be trimmed in mid-November. A decision on whether a new owner will keep the plant running is due by the end of the year.