Veolia: share price up, broker shares his analysis

(CercleFinance.com) - Veolia is up just under 2% in Paris, as UBS today initiated its monitoring of the stock with a Buy recommendation and a price target of 36 euros, suggesting a potential upside of around 25%.


In a research note, the broker explains that - given the attractive valuation the stock currently commands - it sees an interesting entry point for positioning itself 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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