Tenaris stock rating reiterated at Outperform by Bernstein SocGen

Published 27/08/2025, 14:24
Tenaris stock rating reiterated at Outperform by Bernstein SocGen

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating on Tenaris S.A. (NYSE:TS) with a price target of $49.00, citing improved macroeconomic visibility for 2026. The target represents a significant upside from the current price of $36.11, with InvestingPro data showing the stock trading at an attractive P/E ratio of 9.8x and offering a robust 6.2% dividend yield.

The research firm noted a shift in tone from Tenaris’s management, observing that the company’s second-quarter 2025 conference call on July 30 conveyed more optimism compared to the cautious stance during first-quarter discussions.

Bernstein SocGen highlighted several potential positive catalysts for 2026, including PEMEX securing financing and launching a restructuring process, which suggests drilling activity could gradually recover next year.

The firm also pointed to International Energy Agency expectations that Vaca Muerta production could increase by 60,000 barrels in 2026 from approximately 470,000 barrels in 2025, indicating a recovery in fracking activity.

Tenaris now anticipates a firm pick-up in offshore activity in 2026, supported by potential offshore Final Investment Decisions in West Africa, East Mediterranean, Latin America, and Asia, according to the research note.

In other recent news, Piper Sandler has taken a cautious stance on the Oilfield Services sector, highlighting TechnipFMC as a top pick among its peers. The firm identified TechnipFMC, Tenaris, and Baker Hughes as stocks expected to outperform, despite recent challenges in the oil markets. This analysis comes amid a downturn in oil prices, which has resulted in downward earnings revisions across the industry. The decline in oil prices is partly attributed to increased production by OPEC+ and other macroeconomic factors. Piper Sandler’s outlook is based on their oil price shock playbook, which has been employed to navigate recent market volatility. The firm notes that TechnipFMC has emerged as a relative outperformer, experiencing a smaller decline compared to its peers. The cautious approach reflects the broader challenges faced by the Oilfield Services sector in the current economic climate.

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