Thursday tips round-up: Capita

24th Jul 2014 08:27

Capita is a 'hold' after its recent outperformance, according to the Tempus column in The Times, despite a strong showing from the outsourcing group in the first half.The paper highlighted the £1.3bn of contract wins during the first six months of the year, as well as the record pipeline of £5.7bn. Meanwhile, interim pre-tax profits rose 16% on revenues that were up 14%.It said the results were an "auspicious debut" for newly-appointed Chief Executive Andy Parker. "The downside, I would suggest, is entirely political, with the general election looming. Outsourcers are not popular with Labour, which has claimed they are a cosy oligopoly who do not compete sufficiently."Tempus pointed out that the stock, up 17% over the past 12 months, now trades at 19 times earnings. "That looks too high to suggest immediate outperformance. Hold."Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.BC