(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on Veolia, with an unchanged target price of 43.4 euros.
According to the analysis office, the share price would suffer from investors’ fears about the economic slowdown which could affect the group’s performance despite a more resilient profile following the acquisition of Suez.
At this stage, the level of activity remains in line with the performances recorded in the half-year and the 2022 guidance has been reaffirmed. The current valuation is an obvious entry point with 2022-2024 EV/EBITDA ratios showing a discount of 35% compared to the historical average”, notes Oddo.
The broker indicates that the current net income group share is confirmed at around 1.1 MdE, in line with its current forecast of 1.09 MdE, up by more than 20%.
‘Veolia reiterated its expectations of accretion of around 10% of 2022e EPS and around 40% of 2024e EPS’, continues the analyst.
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