VEOLIA : JPMorgan raises its recommendation to 'neutral
April 25, 2023 at 07:06 pm IST
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On Tuesday, JPMorgan raised its recommendation on Veolia from "underweight" to "neutral", with a price target raised from 22.5 to 29 euros.
In a research note, the financial intermediary points out that the French environmental services giant's share price has risen sharply recently, with a gain of 22.5% since the beginning of the year.
While he expects the group to cushion the coming economic slowdown thanks to price indexation, falling energy costs, internal measures and cautious targets, the analyst also sees "limited" upside potential for the stock until a business recovery materializes.
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Veolia Environnement is the world leader in environmental management services. Net sales break down by activity as follows:
- water-related services (40.6%; No. 1 worldwide): water resources management, drinking water distribution and delivery, wastewater collection, treatment and recovery, engineering, design, construction of water treatment facilities and customer relationship management, etc.;
- waste management services (32.4%; no. 1 worldwide): collection, treatment and recycling of liquid, solid, non-hazardous and hazardous waste, waste treatment and recovery through composting, energy recovery from waste, etc. Veolia Environnement also provides urban waste management services (maintenance and cleaning of public spaces, provision of mechanized street cleaning and façade treatment services), maintenance of industrial sites, and dismantling of industrial facilities and equipment at the end of their useful life;
- energy services (27%; No. 1 in Europe): delegated management of urban heating and air conditioning networks, management of thermal and multi-technique services (operation of heating systems, facility design, construction, and maintenance, etc.) and industrial services (industrial process analysis, production equipment operation, service, and maintenance), general management of buildings and public lighting.
Net sales are distributed geographically as follows: France (21.5%), Europe (41.9%), North America (7.4%), Asia (5.6%), Africa and the Middle East (4.9%), Pacific (4.3%), Latin America (4%) and other (10.4%).