The Swiss bank’s analysts also raised their price target for the FTSE 100 listed firm to 1,700p from 1,655p, with the shares currently changing hands at 1,562p, up 1.4% or 21p on Monday’s close.
In a note to clients, the analysts said: “We believe CPG is the best in class in the catering industry given that it is consistently ahead of competition in organic growth and EBIT margin.”
They added: “We continue to see CPG as the industry leader over our forecast period and think the recent share price fall provides a buying opportunity for investors.”
The analysts continued: “While we have admired the operational and financial performance of the company we have not found valuation opportunities attractive enough to have a more positive view.”
They concluded: “We think the recent pull back provides such an opportunity and upgrade our rating to Buy from Neutral.”