Analysts have lifted their price target on Vallourec to €20.17 per share. The update mainly reflects adjusted inputs for discount rate, revenue growth, profit margin and future P/E, while keeping the overall fair value estimate steady at €20.17.
What's in the News
- Vallourec signed a Memorandum of Understanding with Baker Hughes to work together on hydrogen storage solutions for the green hydrogen market, including planned integration of Vallourec's Delphy underground storage system with Baker Hughes compression technology across applications such as green ammonia, sustainable fuels, green steel and clean power for data centers (Key Developments).
- The company entered a supply chain partnership with XGS Energy to provide tubular solutions and engineering support for a three-gigawatt pipeline of geothermal projects in the western United States, including a 150 MW project linked to Meta's data center operations in New Mexico, using products such as THERMOCASE Vacuum Insulated Tubing (Key Developments).
- Vallourec secured a contract with Shell to supply OCTG products and services for the Orca offshore project. The drilling plan currently includes 10 wells and an estimated 12,000 to 15,000 tons of pipes, covering seamless pipes, VAM premium connections and associated onshore and offshore services (Key Developments).
- The company signed a Memorandum of Understanding with Geostock to cooperate on hydrogen and carbon capture, utilization and storage infrastructure. The collaboration will combine Vallourec's Delphy hydrogen storage system with Geostock's mined lined rock caverns and will include sharing expertise on well architecture and tubular solutions for subsurface hydrogen storage and CO2 injection (Key Developments).
- Vallourec announced that Nathalie Delbreuve will become Group Chief Financial Officer and join the Executive Committee from December 1, 2025, succeeding Sascha Bibert after a transition period, following her prior CFO role at Verallia and earlier finance leadership positions at XPO Logistics, OPmobility and other groups (Key Developments).
Valuation Changes
- Fair Value: €20.17 per share, unchanged, with the updated inputs leaving the overall valuation level steady.
- Discount Rate: risen slightly from 6.75% to about 6.78%, indicating a marginally higher required return in the model.
- Revenue Growth: reduced from about 4.82% to about 3.12%, indicating a more moderate top line growth assumption.
- Net Profit Margin: risen from about 11.99% to about 12.60%, indicating a modestly stronger profitability assumption on future earnings in € terms.
- Future P/E: broadly stable, moving only slightly from about 10.85x to about 10.86x in the updated model.
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