Tenaris: boosted by a broker's report

(CercleFinance.com) - The Tenaris stock is up 1.
8%, going against the grain in Milan (-0.5% for the FTSE MIB), supported by a report by Jefferies, which is initiating its coverage of the manufacturer of seamless tubes with a "buy" rating and a target price of 18 euros.

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,” the broker says, which forecasts several years of sequential earnings growth for OCTG producers.



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