Stifel has reaffirmed its 'buy' recommendation and price target of 2,450 pence on Compass, ahead of the publication of the British catering group's 2023 annual results, scheduled for November 20.

The broker sees room for a slight overachievement of expectations in terms of organic growth and continued margin improvement in the second half. For fiscal 2024, it expects adjusted EPS to rise by around 13%.

'The publication should once again highlight Compass' best-in-class profile', sums up Stifel, which also finds the valuation 'convincing, given the resilience of the model combined with the outlook for double-digit earnings growth'.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.