Compass Group, a British catering giant, has received a reaffirmed 'buy' recommendation from UBS. UBS has increased its target price for Compass Group shares from 2,475 pence to 3,090 pence, suggesting a potential upside of 15%. The brokerage notes the ongoing market speculation about margins returning to pre-Covid levels of 7.5% and believes that long-term margins could reach 8%.

Despite the challenges posed by the post-pandemic landscape, UBS expresses confidence in Compass Group's ability to improve profitability. Investors are advised to consider this analysis in their decision-making process and seek professional advice for informed investment choices.