Veolia Environnement: Berenberg raises its target

(CercleFinance.com) - 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.

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