(News Bulletin 247) – Jefferies initiates a follow-up of Vallourec with a ‘buy’ recommendation and a price target of 16 euros, a target based on a ratio of 4.2 times 2024 EBITDA and which gives around 60% of potential increase for the title of the French tube manufacturer.
“With new management in place and a credible plan to increase FCF by 250 million euros per year alongside a progression towards zero net debt by 2025, we see grounds for a revaluation”, judges the broker .
“The normalization of OCTG prices in the United States is the key variable, but Vallourec’s offer of 100% seamless tubular products and a 55% exposure to international prices mitigate the downside potential,” he continues.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
