Berenberg Updates Compass Group Price Target, Estimates After 'Solid' FY25 Results

03:08 AM EST, 12/08/2025 (MT Newswires) -- Berenberg revised its price target and earnings forecast for Compass Group (CPG.L) following the British foodservice company's "solid" fiscal 2025 performance. Analysts on Dec. 5 raised the buy-rated stock's price target to 31 pounds sterling from 30 pounds. The research firm also adjusted its estimates to include the caterer's planned acquisition of Netherlands-based premium food services business Vermaat. Berenberg said it retains its above-consensus estimate for fiscal 2026 organic growth at 7.5% and projects underlying operating profit growth of 11.3%, a beat on the company's guidance of 10%. The group's "around 7%" organic growth target for 2026 is seen as "beatable" by analysts, noting Compass has a history of conservative guidance setting. "Operationally, Compass behaved like the best-in-class compounder that it is in FY25 (to 30 September), delivering earnings upgrades, deploying capital into attractive M&A and returning cash to shareholders. Its share price, however, has fallen by 12% year to date as macro concerns and worries about AI and employment persist. As such, the valuation now presents an attractive opportunity, in our view, given that the shares trade at an 8% discount to history on a structurally higher growth outlook and algorithm," the research firm wrote.