Growth ForecastThe company is expected to grow by 50% by 2030, with scope to build further if permits and authorisation hurdles were to ease.
Stock UpgradeThis leads us to upgrade to Buy from Neutral, with a new €34 PO (from €29.5) offering 15% upside potential.
Valuation And Growth PotentialWe believe this discounted valuation is unwarranted and see the upcoming Capital Markets Day as an opportunity for Veolia to re-establish itself as a superior growth story in the sector.