Discussion Insights

Investor discussions surrounding Capital Limited (CAPD) highlighted a mix of cautious optimism and concern. Key themes included the challenges faced in establishing operations in the USA and the financial implications of upcoming strategic moves, particularly with significant investments in the Reko Diq gold project. Comments reflecting on the company’s valuation indicated a price-to-earnings ratio of 6.2x for 2024, suggesting that there could be potential upside if CAPD can efficiently manage its overheads, which current discussions noted consume over a third of gross profit.

The sentiment appears to be tempered by recent updates, particularly regarding underwhelming performance at the NGM and MSLabs operations. Despite some disappointment, there were positive notes about new contracts such as the one with Barrick in Pakistan, which could bolster the company's prospects if executed well. Analysts, like Tamesis, maintained a price target of 160p, suggesting a belief in recovery potential. A notable quote reflecting investor skepticism came from shanklin, stating, "Ridiculous that CAPD don't give a number for 2024 PBT... hard to see how they spend that amount on running the company." Overall, while there are cautious views on CAPD's near-term outlook, there exists a belief in the company's long-term value if operational issues can be managed effectively.