Compass: Jefferies downgrades 'buy' rating
(CercleFinance.com) - Jefferies has downgraded its rating on Compass Group from "buy" to "hold," having increased its target price from 1740 pence to 1760 pence, following the stock's increase that followed the release of preliminary figures for the past year.
The broker points out that this publication by the UK catering services group was marked by "solid margins, confident outlook comments, and non-core disposals".
However Jefferies said "We struggle to identify catalysts for a positive earnings surprise as the EBITA margin is at an all-time high, Sodexo and Aramark have narrowed their scale disadvantage in US food procurement."
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker points out that this publication by the UK catering services group was marked by "solid margins, confident outlook comments, and non-core disposals".
However Jefferies said "We struggle to identify catalysts for a positive earnings surprise as the EBITA margin is at an all-time high, Sodexo and Aramark have narrowed their scale disadvantage in US food procurement."
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.