RE: expect a drop with Government contracts being scrapped1 Apr 2023 16:00
Agree. But I wouldn't think that it would take the share price down that far.
I see a maximum of 26.9p as the bottom floor. However, you'll be hard pushed to get it as it would be attracting many new short term investors hoping to dump it around the 29 to 33p levels. There's isn't much to gain for punters looking to make a killing with investing in Capita. She's notoriously known for having very weak knees even when there is negative news that doesn't relate to its business operations. Would would be better to invest elsewhere than getting stuck in a tight range with cpi as I've experienced over the last 14 months. Unless you're willing to seat on it for another 6 to 12 months to see an average of 4p up and 4p down, then don't hope for anything more that. They're selling all their family silver and imho, there's isn't much that they've got left that would highly valuable to dispose.
Moreover, with the latest IT issues which could be related to potentially to a cyber attack as has already happened not long ago to their Army recruiting website, then it could backfire to John Lewis ability to make Capita attract more highly prized lucrative contracts and perhaps loose out to Serco.
It's not what the currently invested cpi holders need to hear having thought that the next leg up would be an easy peasy up she goes. Not with Crapita.