Compass: BarCap still 'overweight' after trading update.

(CercleFinance.com) - BarCap is maintaining its "overweight" rating on Compass, with a target price of 1550 pence, after the British catering firm yesterday reported a first-quarter organic growth of 2.
8%, a touch ahead of its +2.5% estimate.

With an outlook for fiscal year 2017 that is qualified as "positive and unchanged", the broker confirms its forecasts and does not expect any changes in the consensus after the update.

"While we believe the backdrop of rising bond yields/inflation continues to present a challenge for defensive stocks like the caterers, we still see Compass as an attractive, high-quality compounder with a close to 12.5% underlying total shareholder return (TSR)," BarCap says.

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