Compass: Oddo drops its price target
(CercleFinance.com) - Oddo BHF confirms its Underperform opinion on the Compass share and adjusts its price target (from 15.
50 pounds to 15.30 pounds).
The British foodservice company published underlying operating profits for its first accounting half-year of 864 million pounds sterling, missing consensus, which was 880 million.
For the financial community, its revenue was disappointing with organic growth of only 4.8% compared to the 5.5% average expectations from analysts.
“The strategy of Compass is clear and defined. It is based on Food Services and selective recourse to Support Services, and the group has in the past shown its faultless execution ability. It is, however, difficult to extrapolate from this right now whether Compass will be able to benefit from the recent operational issues encountered by Sodexo and/or from the change in management at Elior. As a result, we maintain our 'Underperform' rating. Our target price is adjusted to 1530 pence to reflect a lower generation of FCF”, explains Oddo.
Copyright (c) 2018 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.
50 pounds to 15.30 pounds).
The British foodservice company published underlying operating profits for its first accounting half-year of 864 million pounds sterling, missing consensus, which was 880 million.
For the financial community, its revenue was disappointing with organic growth of only 4.8% compared to the 5.5% average expectations from analysts.
“The strategy of Compass is clear and defined. It is based on Food Services and selective recourse to Support Services, and the group has in the past shown its faultless execution ability. It is, however, difficult to extrapolate from this right now whether Compass will be able to benefit from the recent operational issues encountered by Sodexo and/or from the change in management at Elior. As a result, we maintain our 'Underperform' rating. Our target price is adjusted to 1530 pence to reflect a lower generation of FCF”, explains Oddo.
Copyright (c) 2018 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.