Analysts have trimmed their price target on Vallourec by a modest amount to €20.22 from €20.30. This reflects updated assumptions for slightly different revenue growth, profit margin, discount rate and future P/E inputs in their models.
What's in the News
- Vallourec and Geostock signed a Memorandum of Understanding to work together on hydrogen and carbon capture, utilization and storage infrastructure, combining Vallourec's Delphy hydrogen storage system with Geostock's large capacity underground storage solutions (Client Announcements).
- The company plans around 6.2 million tonnes of production for the full year 2025, according to its latest guidance (Corporate Guidance).
- Vallourec committed to invest at least €39 million, with a possible increase to €48 million, to expand its Youngstown, Ohio operations with a new VAM connection threading line that is expected to create 40 full time jobs and support the regional energy sector (Business Expansions).
- Vallourec secured a second contract from TotalEnergies to supply more than 30,000 tons of premium tubular solutions for the AGUP2 project in Iraq, including around 3,000 tons of Premium Line Pipe with anti corrosion coating (Client Announcements).
- The company won a contract with TechnipFMC to supply over 20,000 tons of subsea seamless premium carbon steel line pipes and related coating services for the Orca deepwater project in Brazil, operated by Shell Brasil (Client Announcements).
Valuation Changes
- Consensus analyst price target fair value estimate adjusted slightly from €20.30 to €20.22 per share.
- Discount rate updated from 6.73% to 6.68%, a small move reflecting refreshed model inputs.
- Revenue growth assumption revised from 5.83% to 5.00%, indicating a more measured outlook in the model.
- Net profit margin tweaked from 12.37% to 12.43%, a marginally higher profitability assumption.
- Future P/E long term multiple moved from 10.29x to 10.43x, a modest change in the valuation anchor used in the analysis.
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