Vallourec Shares Surge 9% to €26.18, Reaching a Six-Year High
Vallourec shares soared by 9.08% to €26.18 in early afternoon trading, leading the SBF 120. The seamless tube specialist's stock hit a six-year high following the release of its first-quarter results and a significant target price upgrade by TP Icap Midcap. The session, however, took place in a risk-averse environment, with the CAC 40 down 0.4% at the same time.
A Six-Year Record Driven by Results and a New €30 Target
Vallourec's stock reached €26.18 during the session, its highest in six years, surpassing the previous peak of €26.09 reached during the Covid-19 crisis collapse. The company reported this morning an EBITDA of $220 million for the first quarter of 2026, with a margin of 22.6%, up 200 basis points sequentially, and a share buyback of $107 million. Net cash rose to $67 million. Following this, TP Icap Midcap raised its price target from €21 to €30, upgrading to a buy rating. Morgan Stanley had previously increased its target from €20 to €24 on May 11, maintaining a market-weight rating. The new analyst targets now frame the current price, with the upper range offering a 14.6% potential. At the Q1 2026 release (May 13, 2026), the group also confirmed its intention to distribute nearly €650 million to shareholders by August. However, the Q2 guidance is set in a more modest range of $175 to $205 million EBITDA, reflecting disruptions in the Middle East.
Tense Technical Setup and Strong Short Positions
Today's rally pushes the price above the upper Bollinger band set at €26.02, indicating an overbought condition. The gap with the 200-day moving average at €17.81 is 47%, highlighting the extent of the rise. Over three months, the stock has gained 41.7%. However, the RSI at 55 remains neutral, which can be attributed to the abrupt nature of the intraday movement, not yet smoothed out. According to reviewed statements, net short positions amounted to 8.76% of the capital as of April 17, declared by four funds including Natixis (4.09%) and LMR Partners (1.91%), which can amplify upward movements in case of covering. Based on consensus, the stock is trading at about 15.7 times the expected 2026 earnings, compared to an average of 12.0 times for the energy sector. Next event on the calendar: the general meeting on May 21.
