Compass: stock afloat thanks to broker upgrade
(CercleFinance.com) - Keeping its head above water in London, the Compass share is up over 1% on Thursday afternoon, thanks to Barclays upgrading its rating to "overweight," with a target price of 1500 pence (13% upside) for the British catering services group.
Analysts have raised their 2020/22 operating profit estimates by 9%, 7% and 4% respectively, deeming Compass "as well positioned to: 1) flex costs/contracts sufficiently to recover margins even if volumes remain permanently impaired".
The broker also believes that the British group can gain market shares at the expense of smaller or weaker competitors, and that it can benefit from more outsourcing in health and education.
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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.
Analysts have raised their 2020/22 operating profit estimates by 9%, 7% and 4% respectively, deeming Compass "as well positioned to: 1) flex costs/contracts sufficiently to recover margins even if volumes remain permanently impaired".
The broker also believes that the British group can gain market shares at the expense of smaller or weaker competitors, and that it can benefit from more outsourcing in health and education.
Copyright (c) 2020 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.