Update shared on18 Sep 2025
Fair value Decreased 1.15%Despite improved organic revenue growth, strong contract wins, enhanced margin expansion, and robust cash flow generation supporting a positive outlook for Compass Group, analysts have slightly reduced their consensus price target from £27.74 to £27.42.
Analyst Commentary
- Bullish analysts cited improved organic revenue growth trends and resilient contract wins across key regions.
- Forecasts for enhanced margin expansion driven by ongoing cost control and operating leverage were factored in.
- Positive momentum in new business wins and retention rates contributed to higher price targets.
- Upward revisions were underpinned by robust cash flow generation and continued capital returns to shareholders.
- Valuation adjustments were made to reflect Compass Group’s defensive sector positioning and outperformance versus peers.
What's in the News
- Upgraded FY2025 guidance, now expecting constant currency underlying operating profit growth of ~11%, driven by organic revenue growth above 8% and continued margin improvement.
Valuation Changes
Summary of Valuation Changes for Compass Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £27.74 to £27.42.
- The Future P/E for Compass Group has significantly fallen from 29.18x to 21.37x.
- The Consensus Revenue Growth forecasts for Compass Group remained effectively unchanged, at 7.3% per annum.
Disclaimer
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