(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on Vallourec shares with an unchanged target price of 16.5 euros.
The analysis office expects a very good 4th quarter, after a mixed 3rd quarter (EBITDA worse than expected but FCF higher than expected).
In this context, the group maintains its 2022 guidance with an expected EBITDA between 650 and 750 ME (ODDO BHF 700 ME, consensus 722 ME), despite forecast iron ore production of only 3.8 Mt compared to a capacity of 8.7 Mt .
In addition, ‘the new industrial set up which will be effective at the start of 2024 should make it possible to generate 230 ME in savings and 250 ME in additional FCF’, underlines the analyst.
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