ANALYST VIEWS: WERE COMPASS’ RESULTS ON TRACK?

 
Kasmira Jefford
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KARL BURNS | SHORE CAPITAL
Following a 10 per cent increase in profit before tax, current trading can be described as resilient and the group has confirmed an already well-flagged £500m share buyback programme. We continue to view Compass as a quality, global growth play and highlight its relative de-rating compared to other similar stocks.

JULIAN CATER | COLLINS STEWART
We continue to regard Compass as a well-managed business, capable of mid- single-digit organic growth and modest margin improvement, supplemented by strong cash generation and modest bolt-ons to deliver defensive circa 10 per cent per annum earnings per share growth. We retain our ‘buy’ recommendation.

NIGEL PARSON | EVO SECURITIES
2011 results were exactly in line with our forecasts. Any positive surprise was washed away by Japan’s tragic events. A slightly disappointing North American result was offset by an excellent Rest of World result. We are likely to trim our 2012 forecasts fractionally to reflect a tougher Eurozone market.