Offensive strategy on Veolia via turbo calls

This Thursday, as part of our section dedicated to by-products, we are selecting products from the world leader in water and waste treatment, Veolia.

The company posted a very good financial performance in the first quarter, reinforced by the integration of Suez. Turnover increased by 46% (and by 14.7% on a like-for-like basis), notably boosted by an increase in energy prices billed to customers.

This good start to the year has enabled the group to confirm its objectives for 2022, namely solid growth in its business volume. Veolia also intends to increase its gross operating surplus margin (Ebitda) from 4% to 6% and aims to increase its current net profit by 20%. These encouraging prospects should, in our opinion, stimulate the rise in the share price. As a reminder, HSBC analysts are buying and aiming for a target of 40 euros.

In order to take advantage of a return from investors on the stock, down 19% since the start of the year, we are selecting turbo calls without code expiry. V2YDB. These products have a knock-out barrier of 22.07 euros, more than 15% away from the current level of the action, for a leverage effect of 5.3 times.

Quotation range: 1–1.01 euro.