Compass: Jefferies upgrades stock

(CercleFinance.com) - Jefferies has upgraded its rating on Compass shares from "hold" to "buy," having increased its corresponding target price from 1440 pence to 1660 pence, in comments on the British food services group and its French peer Sodexo.


The broker acknowledges that uncertainty over reopenings has propelled the sector's shares to relative post-Covid lows, but points out that companies' balance sheets have been de-risked in the past year.

Outsourcing has restarted faster than expected, so sector revenues should be stronger at the next peak, it says, adding that the risk/reward ratio is now more favourable.

The market definitely agrees - the share is up about 5% on Wednesday afternoon.


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