Capita's (CPI) "Buy" Rating Reiterated at Peel Hunt

Key Points

• Peel Hunt reiterated its “Buy” rating on Capita and set a GBX 311 price target, implying 23.93% upside from the prior close.
• Capita has a consensus “Moderate Buy” rating from analysts, with four Buys and two Holds and an average price target of GBX 432.20.
• The company reported quarterly EPS of GBX 13.38 but continues to show weak profitability, including a negative 142.88% return on equity and a 7.45% net margin.

Capita (LON:CPI - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Peel Hunt in a research note issued to investors on Tuesday,London Stock Exchange reports. They presently have a GBX 311 price objective on the stock. Peel Hunt's price target would indicate a potential upside of 23.93% from the company's previous close.

A number of other brokerages have also weighed in on CPI. Shore Capital Group reaffirmed a "buy" rating on shares of Capita in a research note on Thursday, April 23rd. Canaccord Genuity Group dropped their price objective on shares of Capita from GBX 900 to GBX 750 and set a "buy" rating on the stock in a report on Friday, July 10th. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of GBX 432.20.

Capita Stock Performance

CPI stock opened at GBX 250.95 on Tuesday. Capita has a 1-year low of GBX 215 and a 1-year high of GBX 416. 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. The firm has a market cap of £300.59 million, a PE ratio of -1.74, a P/E/G ratio of 0.18 and a beta of 0.87. The business's 50-day moving average price is GBX 304.19 and its two-hundred day moving average price is GBX 316.62.

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

Insider Transactions at Capita

In other Capita news, insider Pablo Andres purchased 1,767 shares of the firm's stock in a transaction dated Friday, May 29th. The stock was bought at an average cost of GBX 402 per share, with a total value of £7,103.34. Also, insider Daniel Wosner purchased 20,000 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were acquired at an average cost of GBX 404 per share, with a total value of £80,800. Over the last quarter, insiders have bought 27,410 shares of company stock worth $10,897,189. 5.34% of the stock is currently owned by insiders.

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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