Update shared on 15 Nov 2025
Fair value Increased 1.87%Narrative Update on Compass Group
Analysts have increased their price target for Compass Group from £28.12 to £28.64 per share, reflecting expectations of improved long-term growth and profitability.
Analyst Commentary
Bullish Takeaways- Bullish analysts are emphasizing Compass Group's ongoing improvement in long-term EBITA growth and view it as a key driver for potential share price appreciation.
- There is optimism about the company's platform for European growth, which is seen as more robust and positioned for acceleration compared to previous periods.
- Analysts highlight an improved returns profile and suggest that enhanced profitability metrics may not be fully reflected in the current valuation.
- Some forecasts suggest that the shares have upside potential, with a notable price target that implies approximately 20% growth from current levels.
- Bearish analysts remain cautious, stating that the positive changes in growth and return metrics may already be partially captured in the current share price.
- There are lingering concerns about the pace and sustainability of growth in key European segments given market competition.
- Some analysts urge vigilance regarding execution risks as Compass Group implements strategic changes to capture this anticipated growth.
Valuation Changes
- Fair Value: Increased slightly from £28.12 to £28.64 per share.
- Discount Rate: Increased marginally from 8.81% to 8.83%.
- Revenue Growth: Increased from 7.47% to 7.49%.
- Net Profit Margin: Improved slightly from 5.19% to 5.20%.
- Future P/E Ratio: Increased from 28.57x to 29.13x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.