Capita's (CPI) Buy Rating Reiterated at Canaccord Genuity Group

Key Points

• Canaccord Genuity reaffirmed its “buy” rating on Capita and set a GBX 750 price target, implying 189.43% upside from the stock’s GBX 259.13 opening price.
• Analyst sentiment remains broadly positive, with four “buy” ratings and two “hold” ratings; the consensus target is GBX 420.20. Peel Hunt also maintained a buy rating, while Berenberg cut its target to GBX 270 and kept a hold rating.
• Capita continues to face significant financial pressures, including a negative net margin, negative return on equity, high leverage and weak liquidity, despite contract wins and strategic progress. Insiders have been net buyers over the past 90 days, acquiring 27,410 shares.

Capita (LON:CPI - Get Free Report)'s stock had its "buy" rating restated by analysts at Canaccord Genuity Group in a report released on Wednesday,Digital Look reports. They presently have a GBX 750 price target on the stock. Canaccord Genuity Group's target price points to a potential upside of 189.43% from the company's current price.

Other analysts have also issued research reports about the stock. Peel Hunt reiterated a "buy" rating and set a GBX 311 target price on shares of Capita in a research note on Tuesday. Berenberg Bank reduced their price target on shares of Capita from GBX 330 to GBX 270 and set a "hold" rating on the stock in a research report on Wednesday. Finally, Shore Capital Group reaffirmed a "buy" rating on shares of Capita in a report on Thursday, April 23rd. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Capita currently has an average rating of "Moderate Buy" and a consensus price target of GBX 420.20.

Capita Price Performance

Shares of CPI opened at GBX 259.13 on Wednesday. The firm has a market cap of £310.38 million, a price-to-earnings ratio of -1.80, a PEG ratio of 0.18 and a beta of 0.87. The stock has a 50 day moving average of GBX 301.31 and a 200-day moving average of GBX 315.60. The company has a current ratio of 0.54, a quick ratio of 0.53 and a debt-to-equity ratio of 1,526.79. Capita has a 52 week low of GBX 215 and a 52 week high of GBX 416.

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

Insider Buying and Selling

In related news, insider Georgina Harvey sold 400 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of GBX 340, for a total transaction of £1,360. Also, insider Daniel Wosner acquired 20,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were bought at an average price of GBX 404 per share, with a total value of £80,800. In the last 90 days, insiders acquired 27,410 shares of company stock worth $10,897,189. 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 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

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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