Update shared on27 Aug 2025
Fair value Decreased 1.78%Despite robust organic revenue growth, improved margins, solid cash flow, and ongoing geographic expansion supporting long-term prospects, Compass Group’s consensus analyst price target has marginally decreased from £27.94 to £27.44.
Analyst Commentary
- Bullish analysts point to robust organic revenue growth, driven by strong contract wins and client retention.
- Improved margin outlook reflecting successful cost management initiatives and pricing strategies.
- Positive cash flow generation and healthy balance sheet support continued capital returns to shareholders.
- Ongoing geographic expansion and diversification reduce risk and enhance long-term growth prospects.
- Stable demand in core sectors such as education and healthcare underpins confidence in earnings resilience.
What's in the News
- Upgraded full-year 2025 earnings guidance, expecting constant currency underlying operating profit growth near 11%, driven by organic revenue growth above 8% and ongoing margin improvement.
Valuation Changes
Summary of Valuation Changes for Compass Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £27.94 to £27.44.
- The Future P/E for Compass Group has significantly fallen from 29.88x to 21.47x.
- The Consensus Revenue Growth forecasts for Compass Group has risen slightly from 7.0% per annum to 7.3% per annum.
Disclaimer
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