focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
AM the brokers note did state that they consider there to be MATERIAL potential UPSIDE
They felt the need to say that
As well as the fact they feel that their will be further potential once the new CEO gets his head under the bonnet
If they want to set an easy 23p target imo whilst acknowledging potential MATERIAL UPSIDE that’s totally fine with me
Atb
I guess the MATERIAL potential UPSIDE that the brokers note acknowledges would play into the money week article that believes Capita can triple from current levels due to the MATERIAL potential UPSIDE
70p target
https://moneyweek.com/investments/top-stocks-for-the-new-year
Imo
All seems a bit odd to me.
The broker acknowledges that there is MATERIAL potential UPSIDE if CPI can improve margins (which they are doing by being more selective with contracts, cutting costs, pension deficit payments end next year etc).
Then acknowledge that new CEO will look under the hood for further improvement but then question lack of catalysts - based on what exactly?
And then set an easy to achieve target and say it will need updating- presumably to reflect the MATERIAL potential UPSIDE they themselves recognise!
"Whilst there remains material potential upside, if CPI can improve margins and FCF conversion, with the new CEO joining shortly, there is likely to be a lack of catalysts [...] until he has got his head under the bonnet."
Gla
For Microsoft to benefit from sharing AI advances with us as part of the “shop window” approach- they will need to promote all the advances we are making- hence lots of publicity which in turn will attract new customers imo
Win / Win
I think Microsoft wanted to enter a collaboration agreement with us because we are essentially going to become a big shop window for what AI can do to transform a large service provider in terms of productivity, customer experience, quality and profitability
“It is one of the biggest contractors for the Government, managing the payment of TV licenses and recruitment for the British army. It still generates revenues of close to £3 billion at a margin that has significant upside, following a sizable restructuring of the business over the years by outgoing chief executive Jonathan Lewis.”
He highlights that revenues are now growing again, adding “If the company can earn a 5.5% margin on its revenue base and the company is more appropriately valued at 11x operating profit, then the shares could more than TREBLE from here.”
Just on the cusp of a MASSIVE rerate imo
Risk / Reward
In our favour I believe
Microsoft on our team now
Https://moneyweek.com/investments/top-stocks-for-the-new-year
I’ve tried dipping in and out in the past. It’s a coin toss to whether it works or not each time you try. The odds are against you imo.
Better to BUY a share you have your own conviction in and hold and add. That’s always been my most successful strategy.
But each to their own ideas I guess
Imo NoFear is a value investor, hence he’s currently posting on VOD a share I know very well and could write chapters about. As a value investor imo he or she does not want a miss out here, so hoping to BUY back in before the rise up to the 30p’s - who would want to miss out on that imo
Massive potential for BIG rises here I think
AM - my share price calls have been consistently better than yours 🙄
I said I felt it would be back over 20p by Christmas whereas you said it would never get back above 20p
Yes I now see a rise to 30p and above in the coming weeks and months towards the 70p target
Imo