Compass Group (LON:CPG) received an upgraded rating from the Royal Bank of Canada (RBC), which has raised its evaluation of the company to “outperform.” This adjustment was announced in a research report issued to clients and investors on Monday, according to Digital Look. The new price objective for Compass Group is set at GBX 2,775, an increase from the previous target of GBX 2,700. This price target suggests a potential upside of 18.44% from the stock’s last closing price.
Analyst Ratings Surge for Compass Group
Other financial analysts have also expressed optimism regarding Compass Group. Berenberg Bank reiterated a “buy” rating on October 21, 2024, assigning a target price of GBX 3,000. Citigroup followed suit, upgrading the stock to a “buy” rating and raising their price target from GBX 2,750 to GBX 3,000 in a report dated November 27, 2024.
Additionally, Jefferies Financial Group confirmed a “buy” rating with a target price set at GBX 3,000 on October 10, 2024. Deutsche Bank also increased its rating to “buy” and adjusted its price target from GBX 2,700 to GBX 2,900 as of September 11, 2024. Currently, six analysts have rated the stock as a “buy,” leading to an average rating of “buy” and an average target price of GBX 2,935, according to data from MarketBeat.
Insider Activity and Company Overview
In a related development, insider Leanne Wood purchased 444 shares of Compass Group on November 25, 2024, at an average cost of GBX 2,392 per share, amounting to a total investment of £10,620.48. Currently, insiders hold approximately 0.52% of the company’s stock.
Compass Group PLC is recognized as a leading global food service company, generating annual revenues of $42.2 billion for the year ending September 30, 2024. The firm operates in around 30 countries and employs approximately 580,000 individuals. It specializes in providing food services and support across various sectors, including Business & Industry, Healthcare & Senior Living, Education, Sports & Leisure, as well as Defence, Offshore, and Remote services.
This upgrade from RBC and the positive sentiment from other analysts reflect a growing confidence in Compass Group’s market position and future prospects.
