Citi cuts Sodexo on 'long turnaround', flips preference to Compass with 'buy'

Citigroup has downgraded Sodexo from "buy" to "neutral," citing a long turnaround time for the company to demonstrate recovery. In contrast, Citi has upgraded Compass to "buy" from "neutral," highlighting its attractive valuation and sustainable growth. The broker expects recent European M&A to boost Compass' margins and anticipates share buybacks in November 2026. Aramark and Elior are maintained at "buy." Analyst ratings show mixed views on Sodexo and a more favorable outlook on Compass.