Update shared on 10 Nov 2025
Fair value Decreased 0.55%Veolia Environnement's analyst price target has been revised downward from €35.07 to €34.87, as analysts cite limited near-term catalysts for earnings upgrades. This comes despite ongoing earnings resilience.
Analyst Commentary
Recent updates from major financial institutions provide a closer look at current sentiment around Veolia Environnement. Views are mixed, reflecting both continued confidence in the company’s stable earnings profile and some caution due to limited near-term growth drivers.
Bullish Takeaways
- Analysts note Veolia’s sustained earnings resilience. They highlight that the company's financial performance remains robust even amidst broader sector uncertainties.
- Certain business segments are seen as undervalued. Analysts see opportunities for a higher valuation multiple compared to peers in European utilities.
- Even after recent revisions, analysts still see around 10% potential upside for shares. This suggests room for moderate appreciation over the coming months.
Bearish Takeaways
- Analysts observe limited near-term catalysts for upward earnings revisions. This may keep investor sentiment subdued for now.
- The upcoming period may lack meaningful re-rating triggers. As a result, Veolia shares could underperform compared to other European utility names.
- Despite confidence in earnings resilience, there is caution that upside may be constrained without clear drivers for renewed growth or margin expansion.
What's in the News
- Veolia confirmed 2025 earnings guidance, forecasting approximately 9% growth in current net income group share before Suez PPA at constant forex and solid organic revenue growth (Key Developments).
- The company was awarded a major operation and maintenance contract for the Aguas Pacifico desalination plant in Chile, marking its leadership in sustainable water management. The four-year contract is extendable to 2040 and focuses on renewable energies and drought relief (Key Developments).
- Veolia entered a 10-year agreement to continue operating the Holyoke, Massachusetts wastewater treatment plant, introducing digital and AI-enabled technologies to improve efficiency and environmental standards (Key Developments).
- TotalEnergies and Veolia signed a memorandum of understanding to enhance cooperation on reducing methane emissions, lowering water footprints, expanding sustainable desalination, and developing recovery solutions for strategic resources from waste (Key Developments).
- Veolia opened its first North American Hubgrade Center, using real-time data and AI to support water and wastewater facilities, with plans to serve 27 municipal partners by the end of 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly from €35.07 to €34.87.
- The Discount Rate has risen from 5.98% to 6.41%.
- Revenue Growth projections have fallen modestly, from 4.91% to 4.63%.
- Net Profit Margin has edged higher, moving from 3.60% to 3.66%.
- Future P/E ratio has increased slightly, from 16.19x to 16.43x.
Disclaimer
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