Into H2, JPM prefers Compass, Aramark among caterers

Aramark

11/09/2024 07:31

** Going into H2, J.P.Morgan prefers Compass  CPG.L  and
Aramark  ARMK.N  to France's Sodexo  EXHO.PA  among caterers,
due to stronger performance and contract wins
    ** JPM points to Compass' ("overweight") outstanding
execution and leading scale as well as healthy H2 organic growth
and a potential margin expansion as cost inflation eases
    ** Aramark ("overweight") has upside potential thanks to
solid revenue growth, a strong portfolio of contracts, and an
improving margin profile, JMP says
    ** It places Sodexo ("neutral") on its negative catalyst
watch list as it sees a downside risk to its 2025 estimates
    ** Within meal voucher providers, JPM favours Edenred
 EDEN.PA  ("overweight") for its balanced business model, higher
profitability, solid track record, and valuation
    ** It cuts Pluxee  PLX.PA  to "neutral" from "overweight"
and places the stock on negative catalyst watch list citing an
"unappealing" risk-reward profile
    ** Pluxee's 2025-2026 guidance is looking increasingly
ambitious in the context of a softer-than-expected topline
momentum in H2 this year, JPM adds

    

 (Reporting by Dagmarah Mackos)
 ((dagmarah.mackos@tr.com))