Veolia Environnement: UBS initiates follow-up with a buy recommendation
(CercleFinance.com) - On Thursday, UBS initiated a buy recommendation on Veolia Environnement shares, with a target price of 36 euros, indicating a potential upside of around 25%.
In a research note, the broker explains that, given the attractive valuation of the stock at present, it represents an interesting entry point for positioning oneself in one of the world's leading environmental services companies.
While many European utilities companies are exposed to the theme of decarbonization, Veolia also offers broader exposure to environmental transformation and the circular economy, sectors driven by regulatory developments", he points out.
The broker also highlights the French group's earnings growth profile, saying it expects average annual growth of 9% in earnings per share (EPS) by 2027, whereas the market is only including 6% growth in current share prices.
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