Vallourec Shares Drop 3.5%, Weighed Down by Brent's Decline
The seamless tube specialist significantly declines by midday in a barely positive Paris market. The drop follows the decline of Brent, fueled by the US-Iran agreement and the prospect of Iranian crude returning to the markets. Concurrently, Bernstein has adjusted its price target.
The Stock Breaks Its Support at €23.48 Amid Brent's Fall
Vallourec's stock falls by 3.42% to €22.87 during the session, bringing the stock down to -14.09% over a month. The support at €23.48 was breached during the session and the price remains below, in a context of a pressured oil market. Brent loses more than 4% at $79.62 a barrel, following the agreement signed between Washington and Tehran at the G7 in Evian, which includes the reopening of the Strait of Hormuz and the lifting of a large part of the sanctions on Iranian crude. Operators are factoring in a potential influx of additional barrels, while the IEA has already warned of an oversupply risk. In terms of indicators, the price is 5.3% below its MM20 (€24.15) and 6.2% below its MM50 (€24.38), while the MM200 at €18.95 remains more than 20% below the current price, indicating that the annual underlying trend (+48.2% over a year) remains intact despite the current decline.
Bernstein Lowers Its Target, Short Positions Remain High at 8.78% of Capital
Bernstein lowered its price target yesterday to €28 (from €29 previously) while maintaining its outperform rating, which leaves a theoretical upside of around 22% compared to the current price. CIC Market Solutions, on the other hand, confirmed its buy rating with an unchanged target of €28. In terms of sentiment, four funds cumulatively hold 8.78% of the capital sold short according to the statements reviewed, a high and nearly stable level over thirty days (+0.01 point). This persistence reflects a significant bearish positioning of institutional investors, without recent acceleration, which deserves to be monitored without being overinterpreted. Beyond the oil context, the company held a seminar on geothermal energy on Monday, as part of its ambition to increase the New Energies division to 10–15% of EBITDA by 2030. At the Q1 2026 publication (May 13, 2026), the group also confirmed its intention to distribute nearly 650 million euros to shareholders by August. The next technical marker to watch remains the €23.48 zone, whose confirmed break would shift focus towards the MM200 at €18.95.
