(CercleFinance.com) – The stock rose nearly 4% after the announcement of an agreement from the Brazilian authorities for a 100% takeover of a mine. Mine operations had been temporarily suspended in January 2022 following the rains.
Following this announcement, Oddo BHF confirms its advice to Surperformance with a target of €21.
“This announcement of an agreement to return the mine to full capacity is very good news and has been eagerly awaited by investors in recent weeks. The Pau Branco iron mine should thus return to full production capacity by the end of Q2 2023 at the latest,’ indicates the analysis office.
‘ The acceleration of the generation of FCF as well as the announcements of progress on the side of the new industrial set up (sales of land in Germany) should make it possible to trigger a rerating of the share. Vallourec is currently trading at a discount of nearly 50% based on 2024e EV/EBITDA multiples,” adds Oddo BHF.
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