Raising Tenaris’ FVE to $32 (EUR 15) as Global Tubes Demand and Pricing Remain Strong in 2023

After incorporating Tenaris’ full results for fiscal 2022, we’re raising our fair value estimate to $32 (EUR 15) per share from $29 (EUR 15). Our no-moat and stable moat trend ratings are unchanged following results. The firm had an exceptional fourth quarter, posting quarterly records for revenue and profitability. Total sales in 2022 were $11.8 billion, nearly doubling year over year. The firm also maintained impressive profitability with a firmwide EBITDA margin of 35% compared with 37% in 2022, and a five-year historical average of 21%.