VEOEY - Veolia Environnement: Driving Growth Through Multiple Catalysts

2024-05-16 08:28:56 ET

Summary

• Veolia Environnement SA is a leading global player in water and waste management, with a focus on new technologies and growth markets.
• The company is implementing initiatives to reduce costs and create synergies from the Suez merger, targeting a 10% annual net income growth.
• Despite regulatory risks, the company's undervalued share price and positive growth outlook make it a buy-rated investment opportunity.

Veolia Environnement SA ( VEOEY ) is one of the leading players in water and waste management globally. After posting above expectations results in Q1 2024 , the company appears poised to meet the guidance released for FY24, which implies an EV/EBITDA ratio of 5.7x. This is a very attractive valuation given the growth potential in the main markets where the company operates. The FY24-FY27 business plan focuses on three development areas characterized by structural growth drivers. Specifically, new technologies related to water conservation and treatment, desalination, and the recycling of materials such as lithium are expected to experience significant demand growth in the coming years....

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