Analysts at Citi have upgraded Compass Group PLC (LSE:CPG) to 'Buy' after identifying what it sees as sustainable growth drivers and clearer margin potential following recent M&A activity.
The broker highlighted four elements that it believes support growth and a re-rating, noting increased confidence in the group’s fundamentals.
Citi's analysts, in a note, said they expect like-for-like growth to remain steady into 2026. The note pointed to positive volume trends in US end-markets and pricing above 2.5%. It also forecast continuing margin expansion.
The broker said the medium-term outlook for net new business of 4% to 5% appears sustainable due to the level of underlying activity growth and the group’s competitive positioning.
Compass and Aramark remain Citi’s preferred names in the sector, the analysts said, claiming both companies continue to show stronger organic growth than peers.