Capita’s (CPI) “Buy” Rating Reiterated at Peel Hunt

Peel Hunt reiterated their buy rating on shares of Capita (LON:CPI) in a report released on Tuesday morning, Marketbeat reports. They currently have a GBX 311 price objective on the stock.

Several other research analysts have also recently commented on CPI. Canaccord Genuity Group lowered their target price on Capita from GBX 900 to GBX 750 and set a “buy” rating for the company in a research note on Friday, July 10th. Shore Capital Group restated a “buy” rating on shares of Capita in a report on Thursday, April 23rd. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of GBX 408.20.

Capita Stock Up 0.8%

Shares of LON:CPI opened at GBX 254.50 on Tuesday. The firm’s 50-day moving average is GBX 295.61 and its two-hundred day moving average is GBX 313.64. The company has a debt-to-equity ratio of 1,526.79, a current ratio of 0.54 and a quick ratio of 0.53. Capita has a 1 year low of GBX 215 and a 1 year high of GBX 416. The firm has a market capitalization of £304.84 million, a PE ratio of -1.77, a price-to-earnings-growth ratio of 0.18 and a beta of 0.87.

Capita (LON:CPI) last announced its quarterly earnings data on Tuesday, August 4th. The company reported GBX 13.38 earnings per share for the quarter. Capita had a negative net margin of 7.45% and a negative return on equity of 142.88%.

Insider Activity at Capita

In related news, insider Georgina Harvey sold 400 shares of Capita stock in a transaction on Monday, June 15th. The shares were sold at an average price of GBX 340, for a total transaction of £1,360. Also, insider Adolfo Hernandez purchased 2,763 shares of Capita stock in a transaction that occurred on Friday, May 29th. The stock was bought at an average cost of GBX 405 per share, with a total value of £11,190.15. Insiders purchased a total of 27,410 shares of company stock worth $10,897,189 in the last ninety days. Company insiders own 5.34% of the company’s stock.

Key Headlines Impacting Capita

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Capita won a £425 million extension to its Transport for London contract, strengthening its long-term contract pipeline and providing greater revenue visibility. Capita wins £425 million Transport for London contract extension
• Positive Sentiment: Peel Hunt reiterated its “Buy” rating, while Canaccord Genuity also maintained its “Buy” recommendation and a GBX 750 target, signaling that some analysts see substantial recovery potential. Peel Hunt reiterates Buy rating for Capita
• Neutral Sentiment: Chief People Officer Scott Hiller disclosed a routine purchase of Capita shares. The transaction may modestly signal management confidence but is not expected to materially affect valuation or earnings. Capita chief people officer share purchase
• Neutral Sentiment: Deutsche Bank reaffirmed its “Hold” rating and set a GBX 260 target, broadly close to the current trading level, suggesting limited near-term upside in its base case. Digital Look broker views
• Negative Sentiment: Berenberg cut its target from GBX 330 to GBX 270 and retained a “Hold” rating, reflecting reduced expectations despite the contract win. Digital Look broker views
• Negative Sentiment: Management highlighted resilience in the second quarter, but pension-scheme costs—particularly the CSPS drag—are reducing profit. Capita’s negative net margin, substantial leverage and weak liquidity ratios remain significant investor concerns. Capita expands contract pipeline despite pension costs

Capita Company Profile

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across 8 countries, Capita’s colleagues support primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society – our work matters to the lives of the millions of people who rely on us every day.