Suez Environnement: H1 2013 results – Management’s sleeves rolled up until the macro improves
NEUTRAL, Fair Value EUR10.5 (-1%)
We welcome the retained guidance, increased savings target and the new JV in Barcelona. However, despite solid H1 results given macro and weather conditions, we are wary of waste volumes lagging the industrial production uptick in Q2. The dividend remains solid in our view; hence with valuation at mid-cycle levels and little scope for consensus estimates upgrades until the macro improves (or at least waste volumes recoup with industrial production trends), we retain our Neutral rating and our EUR10.5 FV.
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