Veolia Results: 2024 and 2027 Guidance Set in Line With Expectations; Shares Fairly Valued

We confirm our EUR 31 fair value estimate after no-moat Veolia released 2023 results in line with the company-compiled consensus and our expectations and disclosed its new three-year strategic plan that includes 2024 and 2027 financial targets also roughly in line with expectations. The firm will pay a dividend of EUR 1.25 on 2023 results, 12% above last year and implying a 4.2% yield, lower than the sector's average. However, Veolia intends to grow the dividend in line with EPS through 2027, involving a high-single-digit growth rate, higher than most utilities. Shares appear fairly valued.