RBC Capital lifts Compass price target after results

It said that following the company’s consensus-beating first-half earnings this week, its FY23 and FY24 earnings per share estimates rise by around 3%, underpinning a similar quantum of uplift to the price target.

RBC did, however, also note that it questions the quality of the beat, "given the material restructuring charges taken below the line".

"Compass Group is getting much right and continues to outpace the competition, but we think this is more than priced into the shares and see risks to both earnings and the elevated valuation multiple as recessionary indicators signal tougher times ahead," RBC said.

It kept its rating on the shares at ‘underperform’.