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Take a bite: UBS ups Compass Group rating to ‘buy’ from ‘hold’, sees buying opportunity

The Swiss bank’s analysts also raised their price target for the FTSE 100 listed firm to 1,700p from 1,655p, with the shares currently changing hands at 1,562p, up 1.4% or 21p on Monday’s close
Catering
In a note to clients, the analysts said: “We believe CPG is the best in class in the catering industry"

UBS has upgraded its stance on Compass Group PLC (LON:CPG) to ‘buy’ from ‘hold’ as they see a buying opportunity in the blue chip contract caterer’s stock.

The Swiss bank’s analysts also raised their price target for the FTSE 100 listed firm to 1,700p from 1,655p, with the shares currently changing hands at 1,562p, up 1.4% or 21p on Monday’s close.

READ: Compass serves up full year profit growth, driven by growth in North America

In a note to clients, the analysts said: “We believe CPG is the best in class in the catering industry given that it is consistently ahead of competition in organic growth and EBIT margin.”

They added: “We continue to see CPG as the industry leader over our forecast period and think the recent share price fall provides a buying opportunity for investors.”

READ: Compass among top Footsie gainers as RBC Capital points investors in its direction

The analysts continued: “While we have admired the operational and financial performance of the company we have not found valuation opportunities attractive enough to have a more positive view.”

They concluded: “We think the recent pull back provides such an opportunity and upgrade our rating to Buy from Neutral.”

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