Compass Cleaning Up in Financial Q1 2023

If the global economy is slowing down then someone forgot to tell narrow-moat Compass Group. Organic revenue growth topped 24% in first-quarter financial 2023. While nobody believes this can go on forever, it is clear that momentum is still driving revenue, with the company maintaining its guidance for organic revenue growth of around 15% for full-year 2023. With this already baked into our numbers, we don’t expect to make any material changes at this point. We reiterate our GBX 2,060 fair value estimate and believe the shares offer modest upside from the prevailing share price.