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Highlights

  • Berenberg assigns Buy rating with a price target of AUD 61.72, indicating a 13.21% upside.

  • Recent €1.5 billion acquisition of Vermaat Groep increases Compass Group's European footprint.

  • Q3 FY25 organic revenue up 8.6%, supported by 96%+ client retention and strong North America performance.

Compass Group PLC (LSE:CPG), a global leader in contract food and support services, has received a “Buy” rating from Berenberg analyst Jack Cummings. With a target price of AUD 61.72, this represents a 13.21% premium over the current market price of AUD 56.57. 

This latest analyst rating is in line with the company’s long-term growth outlook, which currently stands at 11.52%. The median target price from analysts sits at AUD 56.57, while the mean is slightly higher at AUD 56.78.

Strategic Acquisition to Drive European Expansion

On 22 July 2025, Compass Group announced the acquisition of Vermaat Groep B.V., a leading premium food services business in Europe, for an enterprise value of approximately €1.5 billion. Vermaat brings a multi-sector platform with a presence in the Netherlands, Germany, and France — all key markets for Compass.

Vermaat has achieved a compound annual growth rate of nearly 20% over the past 15 years, and recorded high client retention rate. In 2025, Vermaat is expected to generate approximately €700 million in sales with double-digit operating margins. The acquisition is set to be EPS and margin accretive in the first full year and will enable Compass to scale its operations further across Europe.

CEO Dominic Blakemore emphasized that the acquisition supports Compass Group’s ambition to replicate its successful North American growth model in the European market, where a significant portion of the €115 billion total addressable market remains self-operated.

Q3 FY25 Performance Backs Upgrading Sentiment

Compass Group has recently reported its Q3 FY25 results, with 8.6% organic revenue growth at the group level. This performance was driven by 9.6% growth in North America and 6.6% growth in International markets. Year-to-date, the group has maintained 8.5% growth, bolstered by high client retention rates of over 96% and continued volume expansion.