London, March 30, 2026, 17:11 BST
Compass Group shares caught a break Monday. BNP Paribas lifted the British contract caterer to “neutral” from “underperform”, though the target price went lower at 2,150 pence. The rating shift lands just two days ahead of Compass’s planned move to trade its London-listed shares in U.S. dollars instead of sterling. MarketScreener
The clock’s ticking for Compass. Sentiment hasn’t fully recovered since February’s drop, even though the company posted a decent first-quarter update. Investors, according to Reuters at the time, worried that AI advances might eat into demand from office customers—tech, finance, and professional services. Those three segments together make up roughly 20% of Compass’s revenue.
The broker’s shift came with reservations. According to MT Newswires via MarketScreener, BNP Paribas trimmed its target to 2,410 pence. On Friday, Compass was at 2,038 pence, Reuters/LSEG data showed.
Compass says switching its trading currency on April 1 aims to bring its share trading currency in line with its reporting currency, hoping to cut down on forex volatility in the stock. The group stressed that the move won’t impact its spot on the London market or its place in the FTSE indexes. Dividends? Still in sterling, unless shareholders specifically opt for dollars.
Compass, in its Feb. 5 trading update, stuck with its 2026 guidance: organic revenue growth is still expected at roughly 7%, excluding M&A and currency impacts, while underlying operating profit should climb about 10%. The company put annualised new business wins at $4 billion. It completed the $1.7 billion Vermaat acquisition in Europe, too.
Chief Executive Dominic Blakemore called it “a strong start to the year,” highlighting the Vermaat deal as bringing more scale and capability to their continental European operations. Compass Group Corporate Website
Investors didn’t hold back. Shares of Compass sank to their lowest level in over three years after the company posted results—despite topping revenue forecasts. Analysts flagged concerns about GLP-1 obesity drugs and how these treatments might weigh on food demand in the longer run. Still, Blakemore sounded an upbeat note to analysts, saying Compass sees “more opportunity than risk” from AI. Reuters
Compass runs services across roughly 30 countries, supplying everything from offices to hospitals, schools, and stadiums. According to Reuters company data, revenue hit 46.07 billion pounds, with net income of 1.87 billion pounds in 2025.
Outsourcing trends look uneven right now. Sodexo, the French competitor, flagged weaker revenue growth for 2026, citing challenges in its U.S. operations. Elior, on the other hand, told investors back in November it’s aiming for higher core profit this year.
Still, there are lingering risks. Should office demand persist at low levels, hiring falter among white-collar customers, or shifts in eating habits outpace Compass’s forecasts, a stronger currency and a decent run of contract wins might not be enough to win back investors’ trust.
