VEOLIA ENVIRONNEMENT : Berenberg reduces its target
May 10, 2024 at 10:32 am EDT
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Berenberg announced on Friday that it had lowered its target price for Veolia Environnement from €38 to €35, while maintaining its buy recommendation on the stock.
In a study released this morning, the financial intermediary said it expected first-quarter results, to be published on May 14, to confirm that the environmental services group remains well placed to achieve both its annual forecasts and its targets for 2027.
Although it expects operating profit (Ebitda) to be penalized by unfavorable currency effects, the analyst explains that he anticipates solid performances on a like-for-like basis in water, waste and energy, suggesting that the objective of 5% to 6% organic growth in Ebitda in 2024 is entirely attainable.
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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%).