Capita's stock offers a price appreciation potential.

The growth of the group represents a catalyst for further rises in prices. Indeed, expectations for coming years shows a strong increase in revenues and earnings. In addition, analysts are revising upwards their forecasts on EPS and Sales during last months.

From a technical viewpoint, prices fell slightly in the late sessions. This bearish movement brang the stock close to an important support area at GBp 1115. Prices are also supported by the 100-day moving average. Those thresholds are likely to allow a significant technical rebound.

Therefore, the fall registered on recent sessions represents a buying opportunity and a key entry point with a target at GBp 1154 and by extension GBp 1211. However, the position need to be protected by a stop loss order under GBp 1115.