0831 GMT - Compass Group remains a well-managed business and has done a good job in the face of unprecedented disruption through Covid-19 restrictions, RBC Capital Markets says after the catering company beat first-half earnings views. However, the lack of visibility around the longer-term impact of structural shifts to hybrid working and learning, and risks of future restrictions are concerning, Karl Green and Andrew Brooke, analysts at the Canadian bank, say in a research note. The combination of optimistic medium-term revenue estimates, concerns over persistent inflationary headwinds across key input cost categories and an elevated valuation are key risks, they say. RBC has an underperform recommendation on the U.K. company's stock and a price target of 1,340 pence. (michael.susin@wsj.com)

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(END) Dow Jones Newswires

05-11-22 1312ET