Numis Securities are positive about the outlook for the retail group given the tough trading conditions in the downturn. Factoring-in a marginally better outlook for US retail and UK wholesale through 2010, Numis has raised its January forecast by £0.5m to £22.8m. Numis has issued a “hold” recommendation for now.
Numis Securities rates Compass Group “buy” citing strong management, attractive structural growth prospects, gearing into economic recovery, a strong balance sheet and free cash flow generation. The food service group head, Richard Cousins, said the company had made good progress but there was still room for improvement.
Homeserve, the home emergency and repair service, is continuing to perform well both in the UK and internationally, according to broker Seymour Pierce. The broker has stuck with its “outperform” recommendation and says the shares remain undervalued given the group’s strong growth potential.