VEOLIA : Oddo BHF maintains its opinion on the share
May 05, 2023 at 06:26 am EDT
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Oddo BHF maintains its Outperform recommendation on Veolia shares and a price target of 43.4E.
First-quarter results were "above our expectations and those of the consensus", notes the analyst.
Above all, "2023 guidance has been confirmed", says the broker.
These include: solid organic growth, cost savings in excess of 350 ME, merger synergies expected to exceed 280 ME by the end of 2023, organic EBITDA growth of +5% to +7%, net income before non-recurring items attributable to equity holders of the parent of around 1.3 BnE, and an expected net debt/EBITDA ratio of around 3x.
All of which confirms Oddo BHF's expectations.
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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%).
VEOLIA ENVIRONNEMENT 
