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Veolia Q1: The M&A And FX Suggest Increased Risk (Rating ...
Wolf Report · 2026-06-18 · via All Articles on Seeking Alpha

Summary

  • Veolia Environnement SA is downgraded to Hold with a new €35/share PT, reflecting increased FX, asset sale, and M&A risks.
  • Organic growth is slowing, with water tech and waste segments underperforming and missing analyst expectations, challenging historical premium valuations.
  • Company faces execution risk on €2B asset disposals and rising debt costs, with leverage maintenance and EBITDA preservation in question.
  • Current valuation offers insufficient upside; de-premiumization and lack of clear catalysts limit near-term capital appreciation potential.
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The Veolia waste recycling and recovery power plant in Leeds, UK

Teamjackson/iStock Editorial via Getty Images

Sometimes you manage to hit your targets, and the company estimates almost perfectly. This is one of those times for me. Veolia Environnement SA (VEOEY) is a company that I have invested in

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VEOEY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.

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