Sell Rating for Tenaris Due to US Market Weakness and Rising Costs

Analyst Christopher Kuplent from Bank of America Securities reiterated a Sell rating on Tenaris (0HXB – Research Report) and keeping the price target at €17.50.

Christopher Kuplent has given his Sell rating due to a combination of factors impacting Tenaris’s financial outlook. One of the primary reasons is the anticipated weakness in the US market, coupled with rising steel input costs, which are expected to increase cash costs per tonne. This situation is likely to pressure margins, which are projected to be slightly lower than consensus estimates.
Additionally, Kuplent foresees that the benefits from the expected increase in Oil Country Tubular Goods (OCTG) prices will not materialize until the second quarter of 2025. Furthermore, the forecasted decline in North American demand due to lower oil prices and reduced activity from US exploration and production companies is expected to negatively impact volumes in the second half of 2025. Consequently, Kuplent’s EBITDA estimates for fiscal years 2026 and 2027 are lower than the consensus, reinforcing the Sell rating.

According to TipRanks, Kuplent is an analyst with an average return of -3.1% and a 43.64% success rate. Kuplent covers the Energy sector, focusing on stocks such as Shell, Equinor ASA, and BP.