Summary
COMPASS - We have upgraded our EPS forecasts for all three forecast years following another strong trading update. We have also raised our DCF derived fair value to 570p and reiterate our buy recommendation.
At a recent meeting, Compass's management stressed that the recovery in cyclical volumes is likely to be slow. Given the high correlation between unemployment and cyclical catering volumes, we unde1rstand why management would be cautious.See the full content of this document
Extract
Cautious Recommendation for Compass
However, our current forecasts for 2011 (+3.6% organic revenue growth) imply that cyclical volumes in that year only...
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