MS cuts Veolia to 'equal-weight', sees rally running out of steam

Veolia Environnement SA

28/07/2026 08:15

** Morgan Stanley cuts Veolia VIE.PA to "equal-weight" from "overweight" after a strong share-price rally, saying the Paris-listed stock now looks fairly valued relative to other European utility companies
** The broker says the strong performance this year is justified given the company's solid fundamentals
** It expects the shares to now perform broadly in line with the sector given current consensus expectations and the lack of near-term catalysts
** It also flags the ongoing share buyback programme as a recent boost to shares
** MS says political uncertainty in France is, however, not conducive to a further re-rating, but notes Veolia's relatively low exposure to its domestic market
** Up to Monday session's close, the stock gained 21.3% YTD; it rose 9.6% over 2025
** Out of 20 analysts that cover Veolia, 16 rate it "strong buy" or "buy" and ​four "hold" - LSEG data

(Reporting by Jakob Van Calster)
((jakob.vancalster@thomsonreuters.com))