Compass: stock falls with broker downgrade
(CercleFinance.com) - The Compass share is down around 1% in London, with Liberum having downgraded the share from "buy" to "hold," while reducing its target price from 2240 pence to 2000 pence, believing that the share of the British mass catering group "now appears fully valued".
The day after the group published FY 2018-19 results, the broker has reduced its forecasts by around 2% to consider the Group's organic growth targets of around 5%, with stable margins.
"The heightened uncertainty and additional restructuring costs means additional cash returns to shareholders are unlikely over the medium term," Liberum warns in its comments.
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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 day after the group published FY 2018-19 results, the broker has reduced its forecasts by around 2% to consider the Group's organic growth targets of around 5%, with stable margins.
"The heightened uncertainty and additional restructuring costs means additional cash returns to shareholders are unlikely over the medium term," Liberum warns in its comments.
Copyright (c) 2019 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.