Analysts have nudged their price target on Vallourec slightly higher to €20.17 from €19.97, reflecting small adjustments to fair value, discount rate, revenue growth, profit margin and future P/E assumptions.
What's in the News
- Vallourec and XGS Energy agreed a supply chain partnership for tubular products for a three gigawatt pipeline of geothermal projects across the western United States, including a 150 MW project with Meta in New Mexico that is planned to supply power to PNM's grid.
- The company secured a contract with Shell to supply OCTG products and services for the Orca offshore project, covering 10 planned wells and an estimated 12,000 to 15,000 tons of pipes with VAM premium connections and related services.
- Vallourec and Geostock signed a Memorandum of Understanding focused on hydrogen and carbon capture, utilization and storage infrastructure, combining tubular solutions with subsurface engineering for underground storage.
- Management announced a production target for 2025 of around 6.2 million tonnes.
- Vallourec plans to invest at least US$39 million, with a potential total of up to US$48 million, to expand its Youngstown operations in Ohio, adding a new VAM high torque threading line and creating 40 full time jobs, with construction expected to finish by early 2027.
Valuation Changes
- Fair Value: Adjusted slightly to €20.17 from €19.97.
- Discount Rate: Moved from 6.68% to 6.75%.
- Revenue Growth: Now set at 4.82% compared with 4.82% previously.
- Net Profit Margin: Updated to 11.99% from 12.21%.
- Future P/E: Now 10.85x compared with 10.54x.
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