Broker snap: Charles Stanley downgrades Compass to hold

28th Sep 2012 18:10

In a report issued yesterday analysts at Charles Stanley downgraded their view on shares of contract caterer Compass Group, to hold from buy. Thus, they pointed out how: "Over the last 12 months the Compass Group share price has risen by 30% and is near record highs. "Compass Group will be publishing its FY12 results on 21st November and today, it has issued a trading update for the year ended 30 September 2012. As expected, the Group has delivered a good performance in quarter four and for the year organic revenue growth of about 5.5% is as expected with strong performances in North America and Fast Growing & Emerging regions offsetting a weak performance in Europe & Japan. "A key feature of the trading update is the announcement of a major reorganisation within the Europe & Japan division to accelerate efficiencies."Shares of Compass Group finished the day 3% lower at 683.5p. AB