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Cautious Outlook and ‘Sell’ Recommendation for Tenaris Amidst Stability and Uncertainty

Cautious Outlook and ‘Sell’ Recommendation for Tenaris Amidst Stability and Uncertainty

Analyst Christopher Kuplent of Bank of America Securities reiterated a Sell rating on Tenaris (0HXBResearch Report), retaining the price target of €17.50.

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Christopher Kuplent’s rating is based on several key considerations surrounding Tenaris’s financial outlook and market conditions. Despite Tenaris’s strong performance in the fourth quarter of 2024, where the company reported a 7% earnings beat and increased its dividend per share, the outlook for the first half of 2025 suggests limited potential for further upside. Kuplent notes that the company’s guidance for the initial quarters of 2025 indicates stability rather than growth, with EBITDA projections not meeting consensus expectations.
Furthermore, there is a notable uncertainty regarding the company’s future actions related to tariffs, share buybacks, and cash utilization strategies, which could deter potential investors. Although Tenaris has demonstrated robust financial results, the lack of clear future growth initiatives and the unchanged price objective of EUR 17.5 reinforce Kuplent’s decision to maintain a ‘Sell’ rating, cautioning investors to remain cautious.

In another report released yesterday, CFRA also downgraded the stock to a Sell with a €15.00 price target.

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