(CercleFinance.com) – The title has gained nearly 23% over the last three months, benefiting from several positive analyzes. It now shows a gain of 67% over almost a year. The stock posted one of the best performances of the year on the CAC40 behind Societe Generale, Hermès and CapGemini.
Oddo believes that the announcement of the acceptance by the European Commission of the merger of Veolia and Suez is undoubtedly excellent news because it paves the way for the termination of the takeover bid and therefore for the near-finalization of the operation. Oddo maintains its Outperformance recommendation and its price target at 43.4 E.
‘Veolia will sell most of its industrial water treatment assets in France and its mobile water service activities in Europe (75 million euros in revenue). Suez, will sell assets in the treatment of hazardous industrial waste in France ‘recalls the analysis office.
‘We estimate the EBITDA impact of around 55 ME (in the middle of the range and on the basis of the average EBITDA margin of Veolia and Suez), or around 3.1% of the EBITDA acquired,’ says Oddo.
Berenberg raised his price target on Veolia Environnement, which he reduced from 30 to 35 euros while maintaining his recommendation to buy the share.
In a research note, the German broker says it expects the environmental services group to begin, with the acquisition of Suez, a ‘new chapter’ in its ‘remarkable transformation’ which has been under way for several years.
“Since 2012, the group has managed to get out of the abyss by taking charge of itself thanks to the implementation of an extremely effective plan”, underlines the broker.
While he looks forward to this ‘third round’ of the French group’s renaissance, Berenberg also hopes for more details on the measures aimed at reducing costs and reviving growth.
AlphaValue has raised its recommendation on Veolia, which it is increasing from ‘sell’ to ‘buy’ with a price target raised from 20.7 to 39.9 euros.
In a research note, the independent research firm explains that its previous recommendation was starting to date, since it did not take into account the merger with Suez.
As such, AlphaValue explains that it rejects the concept of a ‘merger’ between equals, preferring to retain that of a buyout of a wide range of activities, far from the principle of a merger.
‘And this is precisely the reason why the operation creates value,’ said the Parisian firm.
” It gives Veolia a consistent geographic footprint with a focus on key markets (United Kingdom, Central and Eastern Europe, USA, Iberian Peninsula, China, etc.) and a strengthened capacity to secure projects that create value at the local level ‘, underlines AlphaValue.
The design office sees this as an opportunity to build a ‘resilient’ economic model in the face of soaring commodity prices.
Analysts also point to the potential for value creation in ESG issues, with a corporate governance structure likely to be greatly improved according to them.
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