Analyst Christopher Kuplent of Bank of America Securities reiterated a Sell rating on Tenaris, reducing the price target to €16.00.
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Christopher Kuplent has given his Sell rating due to a combination of factors impacting Tenaris. The primary reason for the lowered price objective from EUR17 to EUR16 is the change in foreign exchange assumptions, with the EUR/USD rate adjusted from 1.09 to 1.13. This adjustment reflects the impact of currency fluctuations on Tenaris’ USD-denominated financials when converted to EUR.
Additionally, there are concerns regarding Tenaris’ sales performance, particularly with key clients like Aramco, and a more conservative outlook on international growth, which positions the company’s EBITDA below consensus estimates for 2Q25. Furthermore, uncertainties in the North American market, such as the potential impact of increased tariffs on steel and the anticipated decline in US horizontal rig counts, contribute to the cautious stance. These factors collectively justify the Underperform rating for Tenaris.