MARKET TALK: UBS Lowers Capita Group Price Target

23rd Jul 2010 10:25

0925 GMT [Dow Jones] UBS lowers Capita Group (CPI.LN) price target to 700p from 750p following weaker revenue in the 1H '10 results. Says transactional parts of public sector business could suffer from further pressure in the short-term. Says, "the company has little certainty on contract wins and potential public sector pricing pressure." However, is surprised by the size of the margin increase in the results, up 90bps versus UBS's estimates of an increase of 70bps. Keeps at sell. Shares are -0.8% at 731p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 23, 2010 05:25 ET (09:25 GMT)