Veolia: ambitious?

Photo credit © Veolia

( — Veolia camped on 27.65 euros this Wednesday, while Bernstein remains at ‘outperformance’ on the file, but with a target adjusted to 34.10 euros. Citigroup is still ‘neutral’, targeting a price of 29.90 euros, while Morgan Stanley overweights the stock with a slider of 35 euros. Société Générale had previously remained a buyer on the file by adjusting its target to 34.10 euros. Goldman Sachs is also buying the stock with a cursor located at 35.80 euros, while the group posted an annual turnover of 45,351 ME, organic growth of 9%, and +4.4 % excluding the effect of the increase in energy prices. EBITDA reached €6,543 million, showing sustained organic growth of +7.8%, above the target range of +5% to +7%.

A dividend of 1.25 euros per share

Current EBIT rose sharply by +13.7%, to €3,346 million. Current net profit of €1,335 million is up +14.9%, above the target of €1.3 billion. The increase in Free Cash Flow to 1,143 ME allows a reduction in net financial debt to 17,903 ME, i.e. leverage of 2.74x. Veolia will propose a dividend of 1.25 euros per share at the AGM…

The 2024 objectives are intended to be ambitious, with “solid” organic growth in turnover, organic growth in EBITDA between +5% and +6%, a current net profit share of the group above 1.5 billion euros and maintaining the net debt/EBITDA ratio below 3x…


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