UPDATE: Goldman Sachs Downgrades Tenaris to Sell on Challenging Environment

Goldman Sachs reduced its rating on Tenaris

from Neutral to Sell with a lower $39 price target. Goldman Sachs commented, "We see slower demand, more premium supply and rising raw material costs as a significant challenge for volumes and margins looking into 2013, and our 2013 EPS estimate is now 8% below Reuters consensus. We also see the environment continuing to be difficult for Vallourec, but note that the stock is already trading close to trough P/B levels, which may provide near-term support until the new plants are contributing positively to earnings." Tenaris closed at $38.10 on Monday.