RBC Capital Markets has reiterated its ‘outperform’ rating on Compass Group (LON:CPG), pointing to the company’s ‘excellent start to the year,’ Web FG News reports. The comments came after the FTSE 100 group updated investors on its performance yesterday, saying that it now expected to be slightly above the middle of its target organic growth range for the full year.
Compass’ share price has slipped into the red in today’s session, having given up 0.46 percent to 1,750.00p as of 10:42 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing at 7,092.88 points, flat in percentage terms. The group’s shares have added more than 15 percent to their value over the past year, as compared with a near one-percent fall in the Footsie.
RBC reaffirms Compass as ‘outperform’
RBC reaffirmed Compass Group as an ‘outperform’ yesterday, with a price target of 1,750p on the shares. WebFG News quoted the analysts as commenting that the company had continued to deliver in the first quarter of its financial year, noting that the most recent results were indeed a “reminder of the strength of the equity story”.
The broker reckons that Compass’ outlook remains positive, with full-year organic growth now expected to be ‘slightly above’ the middle of four-to-six percent range with modest margin progression.
“Overall an excellent start to the year,” the analyst pointed out.
Other analysts on FTSE 100 catering group
The 19 analysts offering 12-month price targets for Compass for Financial Times have a median target of 1,730.00p on the shares, with a high estimate of 1,900.00p and a low estimate of 1,550.00p. As of February 7, the consensus forecast amongst 23 polled investment analysts covering the catering group has it that the company will outperform the market.
As of 10:52 GMT, Friday, 08 February, Compass Group plc share price is 1,750.00p.