Numis cuts Capita to 'hold' ahead of trading update

22nd Jul 2015 13:48

(ShareCast News) - Analysts at Numis downgraded outsourcing firm Capita's rating from 'buy' to 'hold', while maintaining a target price of 1,365p.At 1,257p shares in the company slipped by 2.12% to 1,291p.Numis said shares outperformed the market by 22% over the last three months and are now within 3% of its price target.Capita has an attractive model, Numis said, adding that a range of incentives would see stabilisation, if not improvement in group returns over the media term."The combination of mid-single digit organic revenue growth, augmented by bolt-on acquisitions, together with consistent double-digit EBITA margins, strong cash generation and high ROIC is attractive."Capita was due to publish interim results on 29 July.