Royal Bank of Canada has raised its rating for Compass Group (LON:CPG) to “outperform,” reflecting a positive outlook for the food service giant. In a research report released on Monday, the bank set a target price of GBX 2,775, an increase from its previous estimate of GBX 2,700. This upgrade adds to a series of favorable assessments from various analysts regarding Compass Group’s stock performance.
Several other financial institutions have also recently provided their evaluations on Compass Group. On October 10, 2024, Jefferies Financial Group reaffirmed a “buy” rating, establishing a target price of GBX 3,000. Following that, Berenberg Bank restated its “buy” rating and similarly set a price target of GBX 3,000 in a report dated October 21, 2024. Citigroup joined this trend by upgrading Compass Group to a “buy” rating, raising its price objective from GBX 2,750 to GBX 3,000 on November 27, 2024. Deutsche Bank Aktiengesellschaft also contributed to the bullish sentiment, upgrading the stock to a “buy” and increasing its target price from GBX 2,700 to GBX 2,900 on September 11, 2024.
Currently, seven analysts have rated Compass Group with a “buy” designation, leading to a consensus rating of “buy” and an average target price of GBX 2,962.50, according to data compiled by MarketBeat.com.
Recent Insider Transactions and Company Profile
In addition to the upgrades, there were notable insider transactions reported recently. On November 25, 2024, insider Leanne Wood purchased 444 shares of Compass Group at an average price of GBX 2,392 per share, amounting to a total investment of £10,620.48. Currently, corporate insiders own approximately 0.52% of the company’s stock.
Compass Group PLC is a leading food service provider that reported annual revenues of $42.2 billion for the year ending on September 30, 2024. The company operates in around 30 countries and employs approximately 580,000 people. Its services span various sectors, including Business & Industry, Healthcare & Senior Living, Education, Sports & Leisure, and Defence, Offshore & Remote, supported by a well-established brand portfolio.
As Compass Group continues to attract positive attention from analysts, investors will be keen to observe how these ratings influence its stock performance in the coming months.
