Down over 10% in three months, Vallourec shares advance 2%
The seamless tube manufacturer continues its rebound in a rising Paris market. It advances following an already positive session and two analyst target price increases published this week.
A rebound that climbs back above short-term moving averages
Vallourec gains 2.05% to €18.93, in a CAC 40 advancing 0.54% during the session. The share settles above its 20-day moving average (€18.53) and its 50-day moving average (€18.46), while the 200-day moving average at €20.45 remains 7.4% above the price. This rebound follows the contract won from TotalEnergies for an offshore gas field in Azerbaijan, announced on October 12: more than 16,000 tonnes of well and line pipe tubes. The share gains 3.7% over one week, but loses more than 10% over three months.
Notably, Brent is at $105.69 per barrel, up 3% since October 5. On the short-seller side, four funds hold 2.96% of the capital according to filed disclosures, versus 1.96% a month ago. This one-point increase in thirty days shows that the bearish bet has gained significant ground, without reaching a massive level. The figure should be monitored over time rather than read in isolation.
Two analyst target price increases and a resistance level at €19.90
On October 12, Kepler Cheuvreux raised its target price from €23.50 to €26 and upgraded its rating from "hold" to "buy". On the same day, CIC Market Solutions maintained its buy rating with a €28 target price. Kepler Cheuvreux's target exceeds the current price by 37%, while CIC's exceeds it by nearly 48%. Analyst ratings are therefore oriented towards buy on the latest publications.
On technical levels, the price is approaching the resistance at €19.90, or approximately 5% above the current quote, while support stands at €17.53. The RSI at 50.83 remains neutral: the rebound has not pushed the share into overbought territory. On the capital side, Vallourec launched a €200 million share buyback program in January, executed at approximately 49% by mid-May. The €19.90 resistance level is the next technical level to watch.
