(CercleFinance.com) – Stifel reiterates its ‘buy’ recommendation on Compass with a price target raised from 2,100 to 2,300 pence, in the wake of operating profit estimates raised by 2-5% ahead of the annual results of the British food service group.
“We continue to like Compass stock on the back of solid earnings visibility, upside potential from further accelerating net gains and balance sheet optionality,” the broker said.
Stifel expects Compass to ‘pass the symbolic £2 billion mark in operating profit in financial year 2023 for the first time in its history, although its margins have yet to return to their previous peak’.