Veolia Environment downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Veolia Environment (VEOEY) to Equal Weight from Overweight with a price target of EUR 32, down from EUR 36. While the firm sees roughly 10% potential upside on Veolia shares with relatively limited downside risk, it thinks the scope for EPS upgrades is limited too, and a lack of re-rating catalysts in sight means the shares may not outperform European utilities in the coming months. The firm still thinks Veolia’s earnings resilience is underappreciated, and some of its activities also deserve a higher multiple.