Vallourec Shares Drop 7.17% to €24.20 After a 6-Year High of €27.67
Vallourec shares fell by 7.17% to €24.20 in mid-morning trading on the SBF 120, marking one of the index's largest declines. The correction follows the stock reaching a six-year high of €27.67 last week, after the publication of the first quarter financial results. Meanwhile, the CAC 40 is up by 0.64% during the session.
A Sharp Profit-Taking After a More Than 27% Rally Over Three Months
Today's movement comes after an exceptional stock performance. The stock is still up +27.3% over three months and +43.41% over a year, having reached a peak of €27.67 on May 14. The decline brings the price below the 20-day moving average (€25.08), with a 3.51% gap below, indicating a break in the short-term momentum. However, longer averages are still strongly upward-oriented: MM50 at €22.64 and MM200 at €18.02, which is still 34.3% above the latter. The stock is approaching the lower Bollinger Bands (€22.91), at 30% of the band width. The RSI at 61 remains in neutral territory, far from oversold. Net short positions declared on the capital reach 8.76%, according to reviewed declarations, a stable level over 30 days and indicative of structural selling pressure. Major players on the downside include Natixis (4.09%), LMR Partners (1.91%), and CIC (1.81%).
BNP Paribas Exane Raises Its Target to €31, Countering Today's Downturn
BNP Paribas Exane raised its price target yesterday from €21 to €31, while maintaining its outperformance recommendation. The new target offers a potential upside of 28.1% from the current price. This revision follows the publication of the first-quarter results on May 13, which reported an EBITDA margin of 22.6% and $107 million in share buybacks. During the Q1 2026 publication, the group confirmed its aim to distribute close to €650 million to shareholders by August. Based on consensus, the stock is trading at about 15.2 times the expected earnings for the current fiscal year and 11.4 times those of the next fiscal year, compared to 11.6 times for the average of the Energy sector. The oil context remains supportive with Brent at $110.54 a barrel, bolstered by the geopolitical risk premium around the Strait of Hormuz. The next significant event for shareholders: the general meeting on May 21.
