Deutsche Bank Aktiengesellschaft Reaffirms "Hold" Rating for Capita (LON:CPI)

Key Points

• Deutsche Bank reaffirmed its “Hold” rating on Capita with a GBX 260 price target, implying about 3% upside from the stock’s GBX 252.50 price. Overall analyst sentiment remains “Moderate Buy,” with an average target of GBX 408.20.
• Analyst views are mixed: Peel Hunt and Canaccord Genuity maintained “Buy” ratings, while Berenberg cut its target from GBX 330 to GBX 270 and retained a “Hold” rating.
• Capita continues to face profitability concerns, including a negative 7.45% net margin, negative 142.88% return on equity and significant debt, despite contract-pipeline growth and recent insider buying.

Capita (LON:CPI - Get Free Report)'s stock had its "hold" rating reissued by investment analysts at Deutsche Bank Aktiengesellschaft in a research note issued on Wednesday,Digital Look reports. They presently have a GBX 260 price target on the stock. Deutsche Bank Aktiengesellschaft's target price points to a potential upside of 2.97% from the stock's current price.

Other research analysts have also recently issued research reports about the stock. Peel Hunt restated a "buy" rating and issued a GBX 311 price objective on shares of Capita in a research report on Tuesday. Berenberg Bank lowered their price target on shares of Capita from GBX 330 to GBX 270 and set a "hold" rating for the company in a research report on Wednesday. Shore Capital Group reaffirmed a "buy" rating on shares of Capita in a research note on Thursday, April 23rd. Finally, Canaccord Genuity Group reiterated a "buy" rating and set a GBX 750 target price on shares of Capita in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of GBX 408.20.

Capita Stock Performance

Shares of LON:CPI traded up GBX 0.50 during trading on Wednesday, hitting GBX 252.50. 10,767,052 shares of the stock were exchanged, compared to its average volume of 1,636,276. Capita has a 1-year low of GBX 215 and a 1-year high of GBX 416. The company has a market capitalization of £302.44 million, a price-to-earnings ratio of -1.75, a price-to-earnings-growth ratio of 0.18 and a beta of 0.87. The company's fifty day simple moving average is GBX 301.31 and its 200-day simple moving average is GBX 315.60. 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 posted its 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 Daniel Wosner bought 20,000 shares of the stock in a transaction dated Thursday, May 28th. The shares were bought at an average cost of GBX 404 per share, with a total value of £80,800. Also, insider Georgina Harvey sold 400 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of GBX 340, for a total value of £1,360. Insiders purchased a total of 27,410 shares of company stock worth $10,897,189 over the last ninety days. Corporate 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 and an expanded contract pipeline in the first half of 2026, supporting expectations for future revenue visibility. However, pension scheme costs reduced profitability. Capita Expands Contract Pipeline Despite Profit Impact from Pension Scheme Costs
• Positive Sentiment: Canaccord Genuity reaffirmed its Buy rating and set a GBX 750 price target, implying substantial potential upside if Capita delivers on its transformation and contract-growth plans. Digital Look broker ratings
• Positive Sentiment: Peel Hunt also maintained a Buy rating, with a GBX 311 target, indicating a more moderate but still positive view of Capita’s prospects. Digital Look broker ratings
• Neutral Sentiment: Capita’s earnings call highlighted resilience in parts of the business but also a drag from Capita Public Service Solutions (CSPS), leaving investors focused on execution, profitability and the pace of recovery. Capita plc Earnings Call: Resilience Versus CSPS Drag
• Neutral Sentiment: Independent non-executive director Neelam Dhawan is stepping down to focus on other business commitments. The change is not presented as an operational or financial warning, but it removes some board-level experience. Capita board member Neelam Dhawan steps down
• Negative Sentiment: Berenberg cut its price target from GBX 330 to GBX 270 and downgraded its stance to Hold, signaling reduced confidence in near-term upside and weighing on sentiment. Digital Look broker ratings
• Negative Sentiment: Recent results showed a negative net margin of 7.45% and negative return on equity of 142.88%. Pension costs and the CSPS drag reinforce concerns about Capita’s profitability despite its contract momentum.

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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