Vallourec share falls 2%, among the steepest declines on the SBF 120
The decline contrasts with the strong gains recorded the previous day, which had placed the stock at the top of the Paris index. Vallourec retreats as Brent loses ground during the session, following the previous day's surge linked to Middle East tensions, despite BofA Securities' reversal of opinion from "sell" to "buy".
A decline occurring after yesterday's rebound and in a correcting Brent market
In mid-afternoon on Friday, Vallourec falls 2.14% to €19.00, after closing Thursday's session at the top of the SBF 120. Brent declines 1.24% to $105.28 per barrel, erasing part of the 3.4% jump recorded on Thursday, itself fueled by a Houthi missile attack against Saudi Arabia. For a manufacturer of tubes intended for oil and gas wells, the crude oil decline mechanically weighs on sentiment surrounding the stock.
Over the week, Vallourec loses only 0.24%, a sign that the solid gains of previous days cushion today's movement. Over one month, the stock maintains a gain of 8.02%, driven notably by the new agreement signed with Aramco in early September and the 3,000-tonne tubes contract for the Prinos CO2 project secured on September 18. Over three months, however, the balance remains negative at -11.63%.
BofA reverses its opinion to buy with a €24 target while short positions accumulate
The main news of the day comes from BofA Securities, which raised its opinion on Vallourec from "sell" to "buy" on Thursday, September 24, setting a price target of €24.00. At €19.00, this level implies an upside potential of over 26% compared to the current price. This reversal of opinion from a major institution is noteworthy, even though the stock remains under pressure today. On the short seller side, the situation warrants attention: according to recorded declarations, four funds cumulate 2.56% of capital in net short positions, up 1.61 percentage points over thirty days (versus 0.95% a month ago).
This rapid progression reflects a build-up of downward pressure from institutional players, without it being possible to determine the precise motive. The RSI at 56, slightly above neutrality, signals no excess in either direction. The stock is trading above its MA20 at €18.73 (a +1.44% spread), but remains below its MA50 at €19.18, a threshold that today's close will determine whether the stock can reclaim or not.
