Vallourec: Jefferies initiates coverage with 'hold' rating
(CercleFinance.com) - Jefferies has begun to monitor the Vallourec stock with a "hold" rating and a target price set at five euros, in a report on the manufacturer of seamless tubes and its peer Tenaris, on which the broker has adopted a "buy" rating, along with a target of 18 euros.
For Tenaris, the broker highlights its exposure to the US OCTG, an improving free cash flow and a potential upside for shareholder returns in 2019, while it deems that Vallourec has a more balanced risk-return profile.
"Improving OCTG demand, coupled with a Section 232 tailwind, is driving prices higher," says the broker, which forecasts several years of sequential growth in earnings for OCTG producers.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
For Tenaris, the broker highlights its exposure to the US OCTG, an improving free cash flow and a potential upside for shareholder returns in 2019, while it deems that Vallourec has a more balanced risk-return profile.
"Improving OCTG demand, coupled with a Section 232 tailwind, is driving prices higher," says the broker, which forecasts several years of sequential growth in earnings for OCTG producers.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.