Oddo BHF maintains its 'outperform' rating on Bureau Veritas shares, with a price target raised from €30 to €32.
The broker reports that Bureau Veritas has given quantified growth contribution targets for its divisions, and has recalculated the organic growth rates induced by each division on the basis of these assumptions.
Oddo BHF anticipates upside for the M&O division, given the current momentum (+14.4% in 2023, 9.4% in 2022 and 3.1% in 2021) driven by the "verdification" of the fleet.
For the AFC division, Oddo BHF anticipates "rather weak" growth (3.6%) over the long term. As for the Industry division, it also comes as no surprise to see good growth (7.0%), driven by the energy transition.
Finally, B&I comes as a surprise, as the Group's largest division (>30% of sales), in which BVI has global leadership, is capable of above-average growth (7.5%).
In addition, the Group expects a net improvement of 90 bp by 2028, i.e. a level close to 17%", concludes the analyst.
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Bureau Veritas SA is No. 1 worldwide in providing compliance evaluation and certification services applied to the quality, safety, health, environment and social responsibility fields. The group's activity consists of inspecting, analyzing, auditing, and certifying products, assets (buildings, industrial infrastructures, equipment, ships, etc.) and management systems (primarily ISO standards) compared to regulatory or volunteering reference standards. Net sales break down by activity as follows:
- industry and infrastructures (80.2%): analysis and control of hygiene, safety and environment, inspection and certification of industrial equipment, verification of construction compliance, certification of management systems,
- consumer goods (12.1%);
- marine (7.7%): inspection and classification of ships.
At the end of 2023, the group owns a network of nearly 1,600 offices and laboratories worldwide.
BUREAU VERITAS SA 
