Sell Rating for Tenaris Amid Declining OCTG Market and Margin Pressures

Tenaris (0HXB – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Christopher Kuplent from Bank of America Securities reiterated a Sell rating on the stock and has a €17.00 price target.

Christopher Kuplent has given his Sell rating due to a combination of factors impacting Tenaris. The recent market reports indicate that the U.S. Oil Country Tubular Goods (OCTG) market has reached a peak in inflation, with a slight decline observed in May. This weakening of OCTG pricing, coupled with softer oil prices, suggests a downturn in industry activity.
Furthermore, the supply side dynamics present additional challenges. There has been an increase in OCTG imports into the U.S., while raw material costs for steel have decreased. These factors are expected to exert further pressure on OCTG prices and margins, which will likely be reflected in Tenaris’s financial results in the second half of 2025. Consequently, Kuplent has revised the 2025-2026 EBITDA estimates for Tenaris downwards, anticipating a drop in revenues and a squeeze in margins, leading to a lower price objective for the company’s stock.

Kuplent covers the Energy sector, focusing on stocks such as Shell (UK), Shell, and Tenaris. According to TipRanks, Kuplent has an average return of -1.4% and a 50.82% success rate on recommended stocks.