Vallourec: share price rises after two positive analyses

(CercleFinance.com) - The stock ended the day with a gain of close to 4%, benefiting from several positive analyses.


Bank of America Global Research reiterated its 'buy' recommendation and 20-euro price target on Vallourec, forecasting a stronger year-end with updated estimates for the fourth quarter of 2024.

"We see upside potential for the EBITDA consensus of 5% for the final quarter of 2024 and 2% for the full year 2025, with strong FCF indicating initial cash returns", the broker believes.

According to BofA, Vallourec's share price can recover its recent underperformance against its Tenaris peer in the short term, "before outperforming further next year on the declaration of its first dividend in over 10 years".

Oddo BHF also reiterates its 'outperform' rating and price target of 21.7 euros on Vallourec, despite a downward adjustment of its 2024-26 EBITDA expectations (-3% on average) following the seamless tube manufacturer's quarterly results last Friday.

"Vallourec, despite a year-to-date performance close to 16%, still shows a 30% discount (in 2025 EV/EBITDA) to its main comparable Tenaris", stresses the analyst in charge of the file.

Oddo BHF also points out that 'Vallourec is deleveraging faster than expected (eight consecutive quarters of net debt reduction), enabling it to initiate its first return to shareholders (via a dividend) in 10 years!'.

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