UPDATE: Guggenheim Securities Upgrades Tenaris to Buy, Raises PT

In a report published Monday, Guggenheim Securities upgraded its rating on Tenaris TS from Neutral to Buy, and raised its price target from $41.00 to $50.00. Guggenheim noted, “Low risk to volumes, as any reduction in OCTG demand related to a U.S. rig count contraction should be absorbed through a reduction in imports. Margin benefit from lower steel prices (every $50/t change in steel or realized prices = $0.22pa). Pricing support from mix (offshore volumes are increasing) and long-term alliance relationships with onshore operators.” Tenaris closed on Friday at $35.90.