Viccenzo Paternostro Credit Suisse First-place appearances: 0
Total appearances: 2
Team debut: 2013 For a second consecutive year, Viccenzo Paternostro of Credit Suisse claims third place on this list. He reports on four Brazilian pulp and paper companies from a base in São Paulo and is known for his monthly pulp-inventory surveys, as well as the “energy, consistency and perseverance” he brings to bear in covering the sector, as one portfolio manager attests. Paternostro is cautious on pulp producers going forward, largely because of pricing pressure from an oversupply of hardwood pulp, he says. Instead, he recommends remaining bullish on São Paulo–based packaging supplier Klabin, a long-standing favorite. Management is pursuing cost-reduction initiatives, he notes, even as the company already is enjoying earnings momentum, pricing power and market-share expansion. “Klabin’s defensive profile also contributes to the attractive risk-reward balance,” adds Paternostro, citing the producer’s market-leading position in packaging, exposure to demand from the food and broader consumer sectors and ability to either export or sell in its domestic market. His target price of 3.60 reais implies a 60 percent upside to the stock’s trading value at the end of July. “Viccenzo’s views are always to be listened to and trusted,” declares another admirer.