Compass Group: Strong Performance and Promising Growth Outlook Amidst Market Challenges

Morgan Stanley analyst Jamie Rollo maintained a Buy rating on Compass (CPG – Research Report) today and set a price target of p2,700.00.

Jamie Rollo has given his Buy rating due to a combination of factors that highlight Compass’s strong performance and future potential. Despite a slowdown in North American sales growth, Compass’s figures remain robust compared to competitors, indicating resilience and a solid market position. The company has reported a record-high new win pipeline and improved retention rates, suggesting a promising outlook for sustained growth.
Moreover, Compass anticipates continued volume growth and has expressed confidence in maintaining its growth algorithm over the long term. While there are some headwinds expected from M&A and disposals in the second half of the year, the company’s overall guidance remains optimistic. Additionally, despite some challenges in free cash flow conversion, Compass’s strategic initiatives, including potential buybacks, reflect a proactive approach to enhancing shareholder value.

According to TipRanks, Rollo is ranked #5102 out of 9519 analysts.

In another report released on May 6, UBS also maintained a Buy rating on the stock with a p3,055.00 price target.