Vallourec: 'confirmation of positive FCF' Oddo says
(CercleFinance.com) - Oddo believes that the very good news when Vallourec published its Q3 results was the confirmation of positive FCF (+26 million euros after +16 million euros in Q2) reflecting an acceleration of the recovery and the progress compared to initial targets.
Following this announcement, the broker confirms its buy rating on the share, along with its target price of 3.8 euros (upside of 52%).
At the end of 9 months, FCF thus reached -117 million euros (vs. -571 million euros YoY), meaning an improvement of over 450 million euros.
Oddo is maintaining its EBITDA estimates for 2019 and 2020 unchanged at 340 million euros and 515 million euros respectively, representing respective increases of 190 million euros and 175 million euros.
Oddo adds that it has raised its FCF estimate to -93 million euros in 2019, followed by breakeven in 2020, compared with -494 million euros in 2018.
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