Market Overview

UPDATE: Morgan Stanley Downgrades Tenaris to Equal-Weight on Weakening Fundamental

Related TS
Benzinga's Top Upgrades
10 Biggest Mid-Day Losers For Wednesday

Morgan Stanley lowered its rating on Tenaris (NYSE: TS) from Overweight to Equal-weight and reduced its price target from $52 to $45.

Morgan Stanley noted, "In our report last week, we highlighted issues with a furnace in Mexico likely to pressure earnings into year end. However, the latest OCTG market data suggest additional headwinds as actual US OCTG demand markedly has dipped below apparent demand (driven by distributor purchases), with inventories building from 4 to nearly 6 months worth of demand (typically 4 to 5 months is viewed as healthy). Furthermore, pricing pressure has reached premium grades of OCTG, following steadily decreasing prices for commoditized grades of welded and premium tubes. … We have lowered our volume expectations on lower US demand and growing inventories, and have reduced our pricing and margin assumptions accordingly."

Tenaris closed at $38.04 on Friday.

Latest Ratings for TS

Oct 2016Simmons & Co.UpgradesNeutralOverweight
Sep 2016Loop CapitalInitiates Coverage onHold
Jul 2016Goldman SachsDowngradesBuyNeutral

View More Analyst Ratings for TS
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings


Related Articles (TS)

View Comments and Join the Discussion!