2023-06-29 14:56:34 ET
Tenaris ( NYSE: TS ) +2.7% in Thursday's trading as Jefferies initiated coverage with a Buy rating, saying the stock "offers leading U.S. oil country tubular goods exposure with a compelling risk/reward skew" and a growing net cash balance.
Tenaris ( TS ) has "a remarkable operational delivery record," Jefferies analyst Jamie Franklin wrote, noting EBITDA margins have averaged 20% over the last 10 years and have been positive every year since listing in 2002 with a low of 12% in 2020; Q1 2023 EBITDA margin reached 36% but as U.S. pricing declines take effect, gradual, sequential declines are expected through 2023.
Increased penetration of the company's "just-in-time" Rig Direct service model which performed at record levels in Q1 "provides greater market visibility for improved inventory management and lower working capital, Franklin said.
More on Tenaris:
- Financial and valuation comparison to sector peers
- Analysis: A Solid Option In The Oil And Gas Industry
- Stock price return: Down 15% YTD, up 6% in the past 12 months
For further details see:
Tenaris started with Buy at Jefferies, touting 'remarkable' operational record