Compass Group: Strong Growth Potential and Operational Resilience Drive Buy RatingWe reiterate our positive stance on Compass Group, discuss the 4 key investor debates on the stock, and raise our price target from 2,700p to 3,000p. 1. Can the strong outsourcing trend continue? Institutional decisions to outsource their catering facilities is no longer just about saving cost, but dealing with the myriad of regulations, consumer expectations, digital/data needs and health/ longevity movements. These are not receding, and with a $300bn TAM, of which nearly half is still outsourced and ~30% sits with smaller players, there is a long runway of growth. Compass enjoys structural advantages in scale, purchasing and its sectorisation strategy, and our capex analysis suggests it is getting strong ROIC (here).