Compass Group PLC's (LSE:CPG) current share price makes for an appetising opportunity, that's according to analysts at RBC.
The Canadian bank's London-based analysts have upgraded the caterer's shares to 'Outperform', citing the recent pull-back that's created a better entry point.
RBC said concerns about consumer pressure, AI disruption and the impact of GLP-1 drugs now look overdone.
It added that the shares have moved back in line with the adjusted 10-year average on a forward price-to-earnings basis.
Moreover, RBC reckons Compass has significant advantages over the majority of its direct and indirect competitors.
Alongside the upgrade to 'Outperform', the broker also lifted its price target to 2,775p, compared to today's market price of around 2,351p.
Last week, the FTSE 100 group posted results for the year to 30 September 2025 showing revenue of $46.1 billion, ahead of the $45.4 billion consensus, with organic revenue growth of 8.7%. Underlying operating profit increased 11.7% to $3,335 million, exceeding the $3,309 million forecast. A full-year dividend of 65.9 cents per share was proposed.
For the new year, Compass guided to organic revenue growth of around 7% and underlying operating profit growth of 10%, with M&A expected to add a further 2%.