---
title: "Bernstein sees a compelling opportunity to buy this British stock"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286369049.md"
description: "Bernstein identified a buying opportunity in Compass Group, a major British catering stock, after its recent decline. The analysts dismissed concerns over outsourcing growth and AI's impact on dining volumes, citing strong first-half results. Bernstein maintained an Outperform rating with a price target of $38.70. The company's operating margin improved to 7.4%, driven by cost discipline and technology investments. Despite a slowdown in new business, growth is expected to rebound. Bernstein forecasts a 12% EPS growth for the year, supported by organic revenue growth and acquisitions."
datetime: "2026-05-14T03:31:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286369049.md)
  - [en](https://longbridge.com/en/news/286369049.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286369049.md)
---

# Bernstein sees a compelling opportunity to buy this British stock

Investing.com- Bernstein flagged a buying opportunity in a major British catering stock, arguing that it looked attractive after a recent fall as fears weighing on the stock failed to materialize. The bank’s analysts said concerns over slowing outsourcing growth, the impact of artificial intelligence on workplace dining volumes, and margin stagnation had proven overblown, following a set of first-half results that beat expectations on several fronts.Bernstein reiterated its Outperform rating on Compass Group and kept its price target at $38.70. The analysts noted that Compass had de-rated significantly over the past 18 months, with its EV/EBIT multiple falling to around 16 times and its price-to-earnings ratio dropping to 20 times. They described those levels as rare and comparable only to brief episodes seen in 2016, 2018, 2022 and 2023.First-half underlying operating margin came in at 7.4%, up 20 basis points year on year and ahead of the consensus estimate of 7.3%. More than half of that improvement came from cost discipline, purchasing leverage through group purchasing organizations, and investment in data and technology, Bernstein noted. Net new business slowed in the first half, but management guided that it will improve in the second half. The Business and Industry division, which serves corporate clients including technology companies, delivered double-digit organic growth in the period, countering fears that AI-driven job cuts would reduce catering demand.Bernstein forecast earnings per share growth of around 12% for the full year, driven by 7% organic revenue growth, margin expansion, and bolt-on acquisitions including Vermaat in the Netherlands and Pro Care Management in Germany.Compass group offers corporate food catering services and is the world’s largest caterer. The company hiked its 2026 profit outlook earlier this week, as it expands into sectors such as defence, airport lounges, and data centers.

### Related Stocks

- [CPG.UK](https://longbridge.com/en/quote/CPG.UK.md)
- [CMPGY.US](https://longbridge.com/en/quote/CMPGY.US.md)
- [AB.US](https://longbridge.com/en/quote/AB.US.md)

## Related News & Research

- [Bill Ackman just gave investors a first look at what's inside his new fund](https://longbridge.com/en/news/290353346.md)
- [OVHcloud reaffirms FY2026 organic revenue growth outlook of 5%-7%](https://longbridge.com/en/news/290776971.md)
- [Investcorp agrees to buy majority stake in UK facilities manager Smart Managed Solutions](https://longbridge.com/en/news/290403682.md)
- [The 27-year-old building Britain’s Trump-proof AI](https://longbridge.com/en/news/290350857.md)
- [Wealthspire’s Mike LaMena: Unlocking premium RIA valuations](https://longbridge.com/en/news/290602585.md)