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When a broker set a 29p target when we were around 27p it did not stop this shooting past the target to the mid 40p’s

Back in the 20p’s soon imo

Hope some don’t miss the boat hoping for just a little bit more

Imo

Last top up’s at the bar….

Coming very soon imo

Those waiting on fractions of a penny watch out !!

I agree - and when this soon bounces back into the 20p’s and upwards let’s see if some people missed the boat sat waiting for just that little bit more

Imo

Don’t miss the rebound

Oversold

Imo

* bit like RR

Broker recognised MATERIAL UPSIDE that is not in their short term target of 23p

They also recognise that when new CEO gets his head under the bonnet he may find further opportunities

But like the new RR boss did before there share price trebled

Then we had asset managers saying they believe if CPI succeeds in the cost management/ cutting measures it could rerate to around 70p

What’s not to like imo

Not really understanding the relevance of any of that - but atb

Great opportunity imo

Great little BUYing opportunity imo

I think that the broker note pointed out the MATERIAL UPSIDE was a key point.

They acknowledged that should Capita continue to improve margins and revenues then the UPSIDE isn’t slight it’s MATERIAL- like MASSIVE

RR is a comparison to here. They also needed to get costs and productivity sorted and a new top guy came in and set that in motion and the share price trebled

The view is this can treble from here too

Imo

The catalyst of a change at the top at RR resulted in a rise of circa 50% of the share price from Jan 23 to March 23 and has now trebled more or less from Jan 23

That change at the top was THE CATALYST for that massive rerate imo

So a broker reduced their short term fair price target to 23p yesterday (which is a 15% RISE based on current sp) but they also acknowledged that there is definitely potential MATERIAL UPSIDE which is not in there current target here

There are then other brokers at targets varying between 28/29p to over 40p

We know here that there is potential MATERIAL UPSIDE- that’s why we are invested. But it’s good to see that acknowledged and reinforced in the note.

The pension deficit has been sorted with payments completed this year which will then go to cash flow, headcount is being reduced, new contracts and returning customers means we have revenues around £3billion and growing

As well as landing more contracts, a near term catalyst is definitely the new CEO imo

Look what happened to RR share price off the catalyst of a change at the top - MASSIVE share price rerate

Atb

Well yes AM because it’s an important partnership which will be transformative imo

“MICROSOFT is thrilled to embark on this transformative journey with CAPITA,” confirmed Chris Perkins, Managing Director, Enterprise Commercial, MICROSOFT UK. “Our work together is rooted in a shared commitment to empower businesses and employees alike with the potential of AI-enabled transformation. We look forward to inspiring a new era of innovation, agility, and success together.”

I believe AI will have a big impact on improving productivity and process at Capita and this will be accelerated via our collaboration with Microsoft.

I previously read the below which I think is a fair assessment

AI’s role in enhancing productivity goes beyond automating repetitive tasks. AI-driven analytics and data processing unlock deeper insights into customer behavior, market trends, and business performance. With AI’s ability to rapidly analyze vast data sets, outsourcing companies can gain valuable real-time intelligence, empowering them to make agile and informed decisions.

Furthermore, AI-driven process automation streamlines workflows, reducing bottlenecks and minimizing delays.

Given we have many contracts which can sometimes run for periods upto 10 years (and beyond) then these efficiencies can make big differences imo

It was actually Mark Wright, portfolio manager at Momentum Global Investment Management that provided reasons he believes CPI can more than TREBLE - not an unknown journalist

RBC recognises MATERIAL UPSIDE to their 23p target- so I’m in agreement

Don’t think the target will prove very challenging but every other broker already sat a lot higher with their targets

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