Group 1 - Capita PLC received a Buy rating from Shore Capital Markets, indicating confidence in the company's turnaround plan to achieve positive free cash flow and improved margins [2][3] - Shore Capital set a fair value estimate of £5.30 per share, suggesting that the market has not fully recognized Capita's recovery potential, with the current share price at 389p [3] - The analysts noted that Capita is starting from low margins, which presents an opportunity for operating leverage as fixed costs are absorbed [4] Group 2 - Shore Capital expects Capita to transition to positive adjusted free cash flow this year and to enhance margins over the medium term by converting its opportunity pipeline into firm orders [4] - The Contact Centre division is highlighted as crucial for the investment case, with a target to rebuild adjusted operating margins from 4% to 6-8% by 2024 [5] - If successful, adjusted operating profit could recover to £163 million from £96 million in 2024, with free cash flow expected to return to inflows after a period of outflows [5]