RBC Expects 'Resilient' Q2 Results from Veolia Environnement; Price Target Up

RBC Capital Markets raised its price target for Veolia Environnement (VIE.PA) as it expects the company will post "another resilient" set of results in the second quarter. In a Wednesday note, analysts forecast first-half EBITDA to rise 4.9% year over year to 3.53 billion euros and current EBIT to grow 5.2% to 1.93 billion euros. Unseasonably high temperatures in France and Spain are expected to boost water volumes and offer a modest second-quarter tailwind, while stronger US dollar and Eastern European currencies are anticipated to leave the overall foreign exchange impact "largely neutral." Ahead of the French waste and water management company's half-year earnings publication on July 30, the research firm maintained its organic EBITDA growth forecast for full-year 2026 at 5.4%, tracking the lower-to-mid-end of management's 5% to 6% guidance range, accounting for "limited" mergers and acquisition synergies. In full-year 2027, RBC expects an acceleration to 5.9%. "We update for [mark-to-market] movements, positive weather effects, and an additional month of Clean Earth consolidation in FY26E following the $3bn deal completing slightly ahead of schedule. We also reflect.