Vallourec SA, the world's second-biggest producer of oil-and-gas pipes, was reached to ``buy'' from ``neutral'' according to analysts at Merrill Lynch & Co.
``Based on a more positive view on pipes prices, we are increasing our expectations by around 4 percent in 2008-2010,'' the team, including Alejandro Demichelis, wrote in a research note dated today.
Merrill set its share-price estimate for the company at 175 euros. Vallourec rose 2 per cent yesterday to 140.52 euros.
``The development of Brazil's recent deepwater oil & gas discoveries remains a key theme in the global oil service arena and we believe that the market fails to fully appreciate Vallourec's expansion plans in the country,'' the analysts said.
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