Oddo BHF maintains its 'outperform' rating on Vallourec shares, with an unchanged target price of 21 euros, as Vallourec holds its CMD (investor day) on September 12 in London.

This will be the first CMD since the mid-2021 financial restructuring, which saw the Apollo fund enter the capital (via the conversion of debt into equity) as a reference shareholder (28.5% of the capital) and the arrival of new management.

As a reminder, Vallourec has decided to launch a process to sell or close its production units in Germany by the end of 2021", says the analyst, who points out that deleveraging is accelerating.

In Q2 23, net debt stood at 868 ME (around 1 MdE at the end of Q1 23 and 2.2 MdE at the end of 2020, before the financial restructuring) and Vallourec expects further deleveraging in H2 23', continues the broker.

According to Oddo BHF, the Group could take advantage of this deleveraging to communicate on its future shareholder return policy, since Vallourec has not paid a dividend for almost 10 years.

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