VEOLIA : Oddo BHF remains positive despite political events
June 17, 2024 at 09:27 am
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Oddo BHF has reaffirmed its 'outperform' rating and 43.4 euro price target for Veolia, taking a reassuring view of the latest political events in France that have affected the public services group's share price.
"The share price has come under particular attack in recent days over the content of the programs of the various parties running in the parliamentary elections, which seems to us to be exaggerated in view of the group's activities and contractual framework", it judges.
Below 30 euros, the current valuation does not take into account the profile of the new group integrating Suez's assets, nor the synergies and operating efficiencies generated", adds the analyst in charge of the file.
Oddo BHF considers that, at this stage, and after a company contact that confirms its views, 'the various proposals from political parties are not generally negative for the group in terms of drinking water, wastewater treatment or waste management'.
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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 
