On Wednesday, Berenberg renewed its buy recommendation and price target of 36.5 euros on Veolia Environnement, still deeming the stock 'undervalued'.

In a research note, the analyst praises the transparency shown by the environmental services group during its last investor day concerning the breakdown of its revenues and profits between each of its activities.

According to the intermediary, these clarifications have enabled the company to add more detail to its valuation model, in particular by shedding new light on the sum-of-the-parts method, which it believes has reinforced its calculation of a price target of 36.5 euros.

Berenberg emphasizes that Veolia is currently one of its three favorite stocks in the utilities sector in Europe.

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