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Capita (full-year earnings 30 March)
It is going to be a long slog for Capita, a point made repeatedly by its CEO, Jonathan Lewis. Further updates on its plan to pull away from the dependency on the UK government work are likely, plus further details on the current plans to issue up to £700 million of new shares. At just 5.3 times forward earnings (versus a two-year average of 10.4) the shares remain cheap, but until the turnaround plan is accomplished this low rating would appear to be justified.
There is not much to like about the Capita chart. A series of gaps lower have left the shares trading at multi-year lows. The first target in a rally would be the bottom end of the gap down, at 249p, and then the top end at 342p.
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