(News Bulletin 247) – Oddo BHF maintains its ‘outperformance’ rating on Vallourec shares, with an unchanged price target of 21 euros, while Vallourec will hold its CMD (investor day) on September 12 in London.
This will also be the first CMD since the financial restructuring of mid-2021 which saw the entry of the Apollo fund into the capital (via the conversion of debt into equity) as reference shareholder (28.5% of the capital) and the arrival of a new management.
“As a reminder, Vallourec has taken the decision to launch a process of selling or closing its production units in Germany at the end of 2021”, indicates the analyst who indicates that the deleveraging is accelerating.
‘In Q2 23, net debt stood at 868 ME (around 1 MdE at the end of Q1 23 and 2.2 MdE at the end of 2020, before the financial restructuring) and Vallourec expects continued debt reduction in H2 23’, continues the broker.
According to Oddo BHF, the group could take advantage of this debt reduction to communicate on its future shareholder return policy, while Vallourec has not paid a dividend for almost 10 years.
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