Oddo BHF confirms its recommendation to Outperform with a target price of E21, following the announcement of an agreement by the Brazilian authorities for a 100% mine takeover.

' This announcement of an agreement to bring the mine back to full capacity is very good news and has been eagerly awaited by investors in recent weeks. The Pau Branco iron ore mine should thus return to full production capacity by the end of Q2 2023 at the latest' says the analyst firm.

' The acceleration in FCF generation and announcements of progress on the new industrial set-up (land disposals in Germany) should trigger a rerating of the share. Vallourec is currently trading at a discount of nearly 50% on the basis of 2024e EV/EBITDA multiples' adds Oddo BHF.

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