Veolia Environnement

VIE
Real-time Euronext Paris - 10/18 05:35:10 pm
23.08EUR
+0.09%

The underlying trend is in force again

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Patrick Rejaunier
Equity Analyst

Strategy published on : 10/10/2019 | 04:38

long trade
Live

Entry price : 22.64€
Target : 24€
Stop-loss : 21.51€
Potential : 6.01%

Veolia Environnement shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Investors have an opportunity to buy the stock and target the € 24.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● The company is one of the best yield companies with high dividend expectations.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The tendency within the weekly time frame is positive above the technical support level at 20.09 EUR


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● The company does not generate enough profits, which is an alarming weak point.

● The group shows a rather high level of debt in proportion to its EBITDA.

● The group usually releases earnings worse than estimated.

Zonebourse.com 2019
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