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25 Nov, 2021 10:34 25 Nov, 2021 10:34

RBC Capital ups Capita to 'outperform', cites signs of stabilisation

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CapitaSharecast graphic / Josh White

RBC Capital Markets upgraded outsourcer Capita on Thursday to ‘outperform’ from ‘sector perform’ and lifted the price target to 70p from 55p, saying it was "one for the brave".

The bank said Capita is not without risks but there are signs of stabilisation. The balance sheet is de-gearing, with further disposals to come, and the business is being simplified, it said.

"Whilst it remains in the 'uninvestable' camp for many, we have reworked new divisional numbers, cashflow and valuation and now see enough upside on a risk-reward basis," RBC said.

The bank noted that it has attached a "speculative risk" qualifier to its rating.

At 1030 GMT, the shares were up 6.2% at 47.25p.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.