How The Compass Group (LSE:CPG) Valuation Story Is Shifting After The Latest Target Trim

Simply Wall St

Thu, February 26, 2026 at 12:12 PM GMT+9 3 min read

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Compass Group’s fair value estimate has been nudged from £28.19 to £28.03, a trim of about 0.6% that keeps the price target broadly in the same range. Bullish and bearish analysts are reading this move differently, with some viewing it as a small valuation tweak and others seeing it as confirmation that the risk or reward trade off has shifted. As you read on, you will see what is driving those views and how you can track the evolving Compass Group story.

Stay updated as the Fair Value for Compass Group shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Compass Group.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Some investors view the small move in the fair value estimate to £28.03 as fine tuning rather than a change in the Compass Group story, which can support the case that existing expectations around quality and scale remain intact.

With the adjustment running at roughly 0.6%, bullish readers see scope for the share price to track analyst targets without needing a major reset in assumptions about the business model.

🐻 Bearish Takeaways

RBC Capital recently lowered its price target for Compass Group by 100 GBp, which adds to a more cautious tone around the stock’s risk or reward trade off and keeps some investors focused on potential pressures in execution.

The combination of a slightly lower internal fair value estimate and the RBC Capital cut is being read by some as a signal that expectations may be tightening, especially for readers who want a wider margin of safety around current valuation.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!

LSE:CPG 1-Year Stock Price Chart

We’ve flagged 3 risks for Compass Group. See which could impact your investment.

How This Changes the Fair Value For Compass Group

Fair value estimate adjusted from £28.19 to £28.03, a reduction of about 0.6%.

Revenue growth assumption moved from 7.87% to 7.96%.

Net profit margin forecast shifted from 5.00% to 4.96%.

Future P/E multiple revised from 29.27x to 28.94x.

Discount rate updated from 9.08% to 9.01%.

Never Miss an Update: Follow The Narrative

Narratives link a company’s business story to a financial forecast and fair value, showing how contracts, costs, and capital decisions fit together. They update automatically when new research or assumptions come through, so you can see how the thesis is evolving in real time.

Story Continues  

Head over to the Simply Wall St Community and follow the Narrative on Compass Group to stay up to date on:

How a focus on core markets, digital projects, and the $320b foodservices opportunity relates to expectations for higher organic revenue and margins.

The role of acquisitions such as Dupont Restauration and 4Service, plus exits from noncore markets, in shaping future earnings and business mix.

Key pressure points, including higher interest expenses, a 25.5% effective tax rate, inflation sensitive pricing, and extra costs from sustainability and operational complexity.

_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include CPG.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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