BUZZ-Capita: Golman Sachs discounts 2018-2019 growth

** Outsourcing firm Capita (LSE: CPI.L - news) 's shares fall 6.2 pct, bottom of STOXX 600 after Goldman Sachs (NYSE: GS-PB - news) reinstates at "neutral"

** "We think that Capita will face negative organic growth and free cash flow in FY2018 and FY2019, which is likely to continue to weigh on the shares near term," Goldman analysts say, adding that return to positive growth in 2020 already priced in.

** "The new management has been streamlining its businesses and trying to regain its lost focus on growth, yet the impact from execution on growth still remains to be seen," they say

** Goldman analysts also say co's revenues highly geared to UK and so hit by Brexit uncertainty

** Capita has been hit by a slowdown in British business and tighter corporate budgeting and it reported a 60 pct drop in H1 PBT.

** Capita has adopted a continuity plan to protect services it provides to the public sector in times of crisis like the high profile collapse of Carillion (Frankfurt: 924047 - news) .

** Co has also created the new role of chief growth officer and appointed a CFO to drive plans to return the outsourcing firm to revenue growth in 2020.

** Shares (Berlin: DI6.BE - news) down over 55 pct this yr

(Reporting by Noor Zainab Hussain in Bengaluru)