Vallourec: Oddo maintains buy rating
(CercleFinance.com) - Oddo maintains its Outperform rating on Vallourec shares, along with its target price of 16.
5 euros (current price: 11.1 euros, +0.2%).
The analyst says that its order recently won with ExxonMobil Guyana for the delivery of 35,000 tonnes of line pipe confirms Vallourec's presence in Guyana.
Through this contract, Vallourec has better visibility over the use of its plants and ultimately the absorption of its fixed costs, Oddo notes before reiterating its positive rating on the stock, which it says is also a best pick amongst MidCap stocks.
Vallourec shares have increased 26% YTD. The acceleration of FCF and the announcement of progress on the new industrial set-up (sale of land in Germany) should trigger a rerating for the stock, analysts say.
They add that the stock is currently trading at a discount of nearly 50% on the basis of a 2024e EV/EBITDA multiple, which is much above its historical discount (of around 20%/30%).
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