Deutsche Bank downgrade22 Mar 2026 08:21
The outsourcing group's shares have risen 40% in a year, but analysts now see technology as a structural threat to its core business.
Deutsche Bank has downgraded Capita PLC (LSE:CPI), the London-listed outsourcing group, from 'buy' to 'hold' and cut its price target by a quarter to 300p from 405p, citing growing concern that artificial intelligence is eroding the long-term revenue outlook for its contact centre operations.
Analyst David Brockton said technological progress had historically proved deflationary for Capita's business, and that dynamic was becoming increasingly evident in contact centres, where AI was lowering the cost to serve customers, intensifying competition and encouraging clients to bring operations back in-house.