Analyst Matthew Smith of Bank of America Securities reiterated a Buy rating on Tenaris, boosting the price target to €20.00.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Matthew Smith has given his Buy rating due to a combination of factors that highlight Tenaris’s resilience and attractive shareholder returns. Despite anticipating further declines in tube pricing and a softer near-term outlook versus consensus, he views the stock as undervalued relative to the company’s still-elevated profitability. He emphasizes Tenaris’s ability to sustain a double-digit distribution yield, which he believes clearly differentiates it from both sector peers and the broader oilfield services universe. In his view, robust drilling activity, particularly in the US following a rebasing in 3Q25, supports healthier volumes even as pricing normalizes.
Smith also points to several catalysts that, in his assessment, should support the upside case. He expects Tenaris’s 4Q25 EBITDA to come in modestly ahead of market expectations and sees the company’s anticipated share buyback—around $1.2bn, significantly higher than consensus—as a key driver for the share price once announced. While acknowledging consensus forecasts for 2026 are still too optimistic on pricing, he believes the international market’s recovery in activity and margins in the second half of 2026 can underpin longer-term growth. Incorporating lower pricing but stronger US volumes, he has raised his price objective to €20, reinforcing his conviction that the risk-reward profile justifies a Buy recommendation.
According to TipRanks, Smith is an analyst with an average return of -5.4% and a 42.86% success rate.