UBS, one of the world’s leading financial institutions, has raised its price target for Compass Inc. to $3.50 per share. This represents a significant increase from the previous target of $2.85 per share.
Compass Inc. is a global provider of catering and support services, operating in over 45 countries with a workforce of approximately 600,000 employees. The company serves a wide range of clients including corporations, hospitals, schools, and sports venues, among others.
The decision by UBS to raise Compass Inc.’s price target comes after the company’s impressive financial performance in recent months. In May, Compass reported strong interim results for the six months ending March 31, 2023, which showed revenue growth of 6.7% and underlying operating profit growth of 10.3%. The company attributed this success to both organic growth and acquisitions.
UBS believes that Compass’s positive performance is set to continue, citing the company’s strong market position and management team as key factors contributing to its ongoing success. Furthermore, UBS expects Compass to benefit from the trend towards outsourcing catering and support services, particularly as companies seek to reduce costs and focus on their core business operations.
In addition to the positive financial performance, Compass has also made significant strides in sustainability and social responsibility. The company is committed to reducing its environmental impact and has set targets to reduce food waste and greenhouse gas emissions. Compass has also been recognized for its efforts to promote diversity and inclusion, earning a place on the Bloomberg Gender-Equality Index for three consecutive years.
Overall, UBS’s decision to raise Compass Inc.’s price target is a reflection of the company’s strong financial performance and its commitment to sustainability and social responsibility. With a growing demand for outsourced catering and support services, Compass is well-positioned to continue its growth trajectory and deliver value to its shareholders.
