Analyst Matthew Smith of Bank of America Securities maintained a Buy rating on Tenaris, retaining the price target of €18.50.
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Matthew Smith has given his Buy rating due to a combination of factors that highlight Tenaris’s financial resilience and attractive valuation. The company is expected to demonstrate strong free cash flow, which supports a substantial shareholder distribution yield of 13% and a significant buyback program. Despite some anticipated challenges in pricing and EBITDA, Tenaris’s volume growth and dividend increase showcase its robust operational performance.
Additionally, Tenaris’s financial metrics, such as an 8x P/E ratio and a 10% FCF/EV, position it favorably against its peers, making it a compelling investment opportunity. The company’s substantial net cash position further enhances its ability to sustain shareholder returns, while the decision by its controlling shareholder to sell stock is viewed positively for future buyback signaling. Overall, these factors contribute to the view that Tenaris remains a resilient and undervalued equity in the oil and gas sector.
In another report released on October 11, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a €17.00 price target.