Vallourec Shares Drop 2.5% and Break Below Support at €22.16
The seamless tube specialist loses ground during the session in a declining Parisian market. The stock plunges below its short-term moving averages as Brent remains under pressure after several sessions of correction. Oddo BHF has also raised its price target earlier this week.
The Stock Slides Below Its Moving Averages in a Deteriorating Paris Market
Vallourec shares fell 2.37% to €20.60 in early afternoon trading, down from €21.10 the previous day. The stock is now significantly below its MM20 (€23.73) and MM50 (€24.32), with a gap of about 13 to 15%, indicating a clearly deteriorated short-term momentum. The MM200 at €19.10 remains a medium-term benchmark, with the price maintaining a positive gap of about 8% relative to this reference.
The RSI at 36 reflects the selling exhaustion of recent sessions without indicating a clear oversold condition, while the monthly decline reaches 15.26%. The session is part of a CAC 40 down by 0.83% and an SBF 120 falling in the same proportions. Brent, at about $73 per barrel in session, stagnates after a 10% decrease over ten sessions due to the fading of geopolitical risk premium in the Middle East. As Vallourec is directly exposed to exploration-production spending, the movement of crude oil weighs on the stock's market trajectory.
Oddo BHF Raises Its Target to €31.50 and the Cumulative Short Remains High at 8.78% of Capital
In terms of analyst opinions, Oddo BHF raised its price target from €31.00 to €31.50 on June 24, while maintaining an 'outperform' rating. The new target offers a theoretical potential of over 50% compared to the current price. Concurrently, four funds have accumulated a net short position of 8.78% of the capital according to the filings reviewed, a very slight increase (+0.02 point over thirty days).
This level remains high and reflects the persistence of a structured bearish bet on the stock, without any notable recent intensification: the identified selling pressure exists, but is not intensifying. On the fundamentals side, the company confirmed during the first quarter 2026 report (on May 13) its intention to distribute nearly 650 million euros to shareholders by August, with expected revenue ranging between 175 and 205 million for the following quarter. The underlying trend continues to be dictated by the trajectory of Brent and the holding of the support at €22.16, now broken during the session.
