Oddo BHF maintains its Outperform rating on Vallourec shares, with an unchanged price target of 21 euros.

In its Q1 2023 financial communication, Vallourec anticipated EBITDA for Q2 2023 similar to that generated in Q1 2023 (i.e. 320 ME) and overall cash generation in Q2 2023 close to breakeven.

'Vallourec now anticipates EBITDA for Q2 2023 of around 370 ME and overall cash generation of around 110 ME', reports the analyst.

In addition, Vallourec now expects EBITDA of between €950m and €1.1bn for the 2023 financial year.

We underline the convergence of interests between the reference shareholder (Apollo), management, bankers (BSA holders) and minority shareholders, i.e. a rise in the share price", notes the broker, who points out that the stock is on the list of recommended European Midcap stocks for H2 2023.

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