Analyst Matthew Smith from Bank of America Securities maintained a Buy rating on Tenaris and increased the price target to €19.00 from €18.50.
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Matthew Smith has given his Buy rating due to a combination of factors that highlight Tenaris’s resilience and valuation appeal. Despite recent weakness in tube prices and softening market indicators, he believes the company’s solid balance sheet and strong cash generation position it well to navigate a challenging demand environment. His analysis shows that, while he is slightly more cautious than consensus on revenue growth through 2026, he expects stronger free cash flow than the market is currently forecasting. This stronger cash profile underpins his view that Tenaris can sustain or repeat sizeable share repurchase programs, adding to shareholder returns.
Smith also emphasizes Tenaris’s defensive characteristics in a cyclical sector, supported by roughly $3.5 billion in net cash and low financial risk. He notes that the stock trades at what he sees as undemanding valuation levels, with an enterprise value to EBITDA multiple below 7x and a free cash flow yield around 9%. In his view, these metrics do not fully reflect the company’s robust financial position and capital return potential. As a result, he maintains a Buy rating with a price objective of €19, implying further upside from the current share price.
According to TipRanks, Smith is ranked #8371 out of 10141 analysts.