Vallourec: Oddo raises target price
(CercleFinance.com) - Oddo maintains its "outperform" rating on Vallourec shares, having increased its target price for them from 14.
5 euros to 16.5 euros.
The broker has adjusted its EBITDA guidance for 2021/2024 by 13% and now expects significant growth in EBITDA in 2022, which it expects to reach 626 million euros, up 27.4% y-o-y.
If we include the cost savings targets communicated by the group, this would mean posting EBITDA of over 1 billion euros in 2024, the analyst says, who also considers this prospect increasingly credible.
While Oddo points to pressures on working capital (which are not serious at this stage of the cycle) and a slight increase in net debt over the quarter (1,213 million euros compared to 958 million euros at end-2021), it believes that the group will be able to reduce its debt over the next few quarters, it adds.
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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.
5 euros to 16.5 euros.
The broker has adjusted its EBITDA guidance for 2021/2024 by 13% and now expects significant growth in EBITDA in 2022, which it expects to reach 626 million euros, up 27.4% y-o-y.
If we include the cost savings targets communicated by the group, this would mean posting EBITDA of over 1 billion euros in 2024, the analyst says, who also considers this prospect increasingly credible.
While Oddo points to pressures on working capital (which are not serious at this stage of the cycle) and a slight increase in net debt over the quarter (1,213 million euros compared to 958 million euros at end-2021), it believes that the group will be able to reduce its debt over the next few quarters, it adds.
Copyright (c) 2022 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.