VEOLIA ENVIRONNEMENT : Berenberg raises its target
November 21, 2023 at 10:29 am
Share
Berenberg announced Tuesday that it has raised its price target for Veolia Environnement from €36.5 to €38, deeming the utilities specialist both 'resilient' and 'undervalued' on the stock market.
According to the analyst, who maintains his buy recommendation on the stock, the solid growth recorded by the group over the first nine months of the year testifies to its 'resilience' in a 'difficult' economic environment.
It also highlights the French group's commercial successes, as well as its discipline in terms of pricing, costs and capital allocation.
"In our view, these elements, without taking into account the opportunities represented by the global ecological transition and the value creation linked to the Suez acquisition, are not reflected in the current share price", adds the intermediary.
In Berenberg's view, this valuation gap is untenable at a time when Veolia continues to refute concerns about the cyclical nature of its businesses.
Copyright (c) 2023 CercleFinance.com. All rights reserved. The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
Veolia Environnement is the world leader in environmental management services. Net sales break down by activity as follows:
- water-related services (40.6%; No. 1 worldwide): water resources management, drinking water distribution and delivery, wastewater collection, treatment and recovery, engineering, design, construction of water treatment facilities and customer relationship management, etc.;
- waste management services (32.4%; no. 1 worldwide): collection, treatment and recycling of liquid, solid, non-hazardous and hazardous waste, waste treatment and recovery through composting, energy recovery from waste, etc. Veolia Environnement also provides urban waste management services (maintenance and cleaning of public spaces, provision of mechanized street cleaning and façade treatment services), maintenance of industrial sites, and dismantling of industrial facilities and equipment at the end of their useful life;
- energy services (27%; No. 1 in Europe): delegated management of urban heating and air conditioning networks, management of thermal and multi-technique services (operation of heating systems, facility design, construction, and maintenance, etc.) and industrial services (industrial process analysis, production equipment operation, service, and maintenance), general management of buildings and public lighting.
Net sales are distributed geographically as follows: France (21.5%), Europe (41.9%), North America (7.4%), Asia (5.6%), Africa and the Middle East (4.9%), Pacific (4.3%), Latin America (4%) and other (10.4%).
VEOLIA ENVIRONNEMENT 
