Like Suez last week, Veolia posted lower YoY EBITDA growth than what we observed in H1. Lower favourable FX effects combined with with no real rebound on the waste business explained this performance. Cost cutting remained strong, with the group having already achieved its 2015 programme at end September leading to a confirmation of 2015 targets. As expected, no indications were given on what we can expect post 2015. We still recommend to wait for the group’s investors day (December 14th) before making a decision on the investment case, but we see limited earnings potential adjustment from consensus on 2016-18 given we believe restructuring efforts expected by the market are already well appreciated.
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