Veolia Continues To Defy the Bears by Firing on All Cylinders in Q3; Shares Undervalued

We maintain our EUR 30.50 fair value estimate after no-moat Veolia released strong third-quarter results (slightly above consensus it polled) and said it will reach the upper end of its 2022 guidance, in line with our estimates. Undervaluation of the shares reflect the market's overdone concerns about the impact of the upcoming recession on the group. Cyclical activities account for only 15% of turnover and the group has demonstrated in the past it's able to increase cost savings to cope with the economic slowdown.