Berenberg Bank Lowers Capita (LON:CPI) Price Target to GBX 270

Key Points

• Berenberg Bank cut Capita’s price target to GBX 270 from GBX 330 and maintained a “hold” rating, implying roughly 4.2% upside. Analysts overall remain moderately bullish, with a consensus target of GBX 420.20.
• Capita’s shares rose 2.8% to about GBX 259, but the company continues to face financial pressure, including a negative net margin, negative return on equity, high leverage and weak liquidity.
• Recent insider purchases and contract-pipeline progress provide some positives, while pension-scheme costs and weakness in Capita Public Service Solutions continue to weigh on earnings and investor sentiment.

Capita (LON:CPI - Get Free Report) had its price objective cut by research analysts at Berenberg Bank from GBX 330 to GBX 270 in a research report issued to clients and investors on Wednesday,Digital Look reports. The firm presently has a "hold" rating on the stock. Berenberg Bank's target price suggests a potential upside of 4.20% from the stock's current price.

A number of other analysts have also weighed in on the company. Peel Hunt restated a "buy" rating and set a GBX 311 target price on shares of Capita in a report on Tuesday. Shore Capital Group reiterated a "buy" rating on shares of Capita in a report on Thursday, April 23rd. Finally, Canaccord Genuity Group reduced their price target on Capita from GBX 900 to GBX 750 and set a "buy" rating for the company in a research report on Friday, July 10th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of GBX 420.20.

Capita Trading Up 2.8%

LON:CPI opened at GBX 259.13 on Wednesday. The firm has a 50-day simple moving average of GBX 301.31 and a 200-day simple moving average of GBX 315.60. Capita has a one year low of GBX 215 and a one year high of GBX 416. The firm has a market cap of £310.38 million, a P/E ratio of -1.80, a P/E/G ratio of 0.18 and a beta of 0.87. The company has a debt-to-equity ratio of 1,526.79, a quick ratio of 0.53 and a current ratio of 0.54.

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

Insider Transactions at Capita

In other news, insider Georgina Harvey purchased 2,880 shares of the stock in a transaction on Monday, June 15th. The stock was bought at an average price of GBX 343 per share, with a total value of £9,878.40. Also, insider Pablo Andres purchased 1,767 shares of the stock in a transaction on Friday, May 29th. The shares were purchased at an average cost of GBX 402 per share, with a total value of £7,103.34. Over the last 90 days, insiders have purchased 27,410 shares of company stock worth $10,897,189. Insiders own 5.34% of the company's stock.

More Capita News

Here are the key news stories impacting Capita this week:

• Positive Sentiment: Capita reported continued strategic progress in the first half of 2026, including growth in its contract pipeline. This supports the company’s efforts to build more predictable future revenue. Capita boosts contract pipeline but profits hit by pension scheme costs
• Positive Sentiment: Capita secured a £424.6 million renewal for Transport for London’s road-charging services, providing important long-term revenue visibility and reinforcing its position in public-sector outsourcing. Capita secures £424.6 million TfL contract renewal
• Positive Sentiment: Peel Hunt reaffirmed its “buy” rating and set a GBX 311 price target, indicating that the broker sees potential recovery from current depressed levels if Capita delivers on its operational plans. Broker ratings
• Neutral Sentiment: Independent non-executive director Neelam Dhawan is stepping down to focus on other business commitments. The change may attract some governance attention but does not, by itself, alter Capita’s operating outlook. Neelam Dhawan steps down
• Negative Sentiment: Capita’s first-half results highlighted pressure on earnings from pension-scheme costs. The company reported quarterly EPS of GBX 13.38, but its net margin remained negative at 7.45% and return on equity was negative at 142.88%, underscoring ongoing profitability concerns. Capita first-half results
• Negative Sentiment: The earnings call described relatively resilient performance in parts of the business but a drag from Capita Public Service Solutions (CSPS). That mixed trading update, combined with Capita’s high leverage and weak liquidity ratios, likely outweighed the contract wins in investor sentiment. Capita earnings call: resilience versus CSPS drag

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.

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