Capita (LON:CPI) Earns Buy Rating from Canaccord Genuity Group

Key Points

• Canaccord Genuity reiterated a Buy rating on Capita with a GBX 900 price target, implying a potential upside of about 231%, while the analyst consensus is a "Moderate Buy" with an average target of GBX 464.20 (4 Buys, 2 Holds).
• Capita shows financial strain despite its valuation—the stock traded at GBX 271.50 (50‑day/200‑day MAs ~GBX 341/337), but the company has a very high debt-to-equity ratio of 964.14, negative net margin (-7.45%) and negative ROE (-142.88%).
• Insiders have been buying recently: executives Pablo Andres and Adolfo Hernandez purchased shares at ~GBX 279–280, with insiders acquiring 58,718 shares in the last three months and owning 13.40% of the stock.

Capita (LON:CPI - Get Free Report)'s stock had its "buy" rating restated by investment analysts at Canaccord Genuity Group in a research note issued to investors on Friday,London Stock Exchange reports. They currently have a GBX 900 price objective on the stock. Canaccord Genuity Group's price objective would indicate a potential upside of 231.49% from the stock's current price.

Other research analysts have also issued reports about the stock. Berenberg Bank dropped their price target on shares of Capita to GBX 330 and set a "hold" rating on the stock in a research note on Wednesday, March 11th. Shore Capital Group restated a "buy" rating on shares of Capita in a research report on Thursday. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of GBX 464.20.

Capita Stock Performance

LON:CPI opened at GBX 271.50 on Friday. The firm's fifty day moving average price is GBX 340.75 and its 200 day moving average price is GBX 337.15. Capita has a 1-year low of GBX 168 and a 1-year high of GBX 415.50. The company has a debt-to-equity ratio of 964.14, a current ratio of 0.54 and a quick ratio of 0.53. The firm has a market cap of £308.83 million, a price-to-earnings ratio of 20.02, a price-to-earnings-growth ratio of 0.18 and a beta of 0.66.

Capita (LON:CPI - Get Free Report) last announced its quarterly earnings data on Tuesday, March 10th. The company reported GBX 49.71 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%.

Insiders Place Their Bets

In related news, insider Pablo Andres purchased 12,178 shares of the stock in a transaction dated Wednesday, March 11th. The shares were acquired at an average cost of GBX 280 per share, with a total value of £34,098.40. Also, insider Adolfo Hernandez purchased 34,540 shares of the business's stock in a transaction dated Friday, March 13th. The stock was bought at an average price of GBX 279 per share, with a total value of £96,366.60. In the last three months, insiders acquired 58,718 shares of company stock valued at $16,346,500. 13.40% of the stock is owned by corporate insiders.

About Capita

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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