Analyst David Farrell of Jefferies maintained a Buy rating on Babcock International, boosting the price target to p1,400.00.
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David Farrell has given his Buy rating due to a combination of factors that highlight Babcock International’s strong performance and promising outlook. The company’s EBITA results exceeded expectations by 7%, driven by robust organic revenue growth and improved margins, particularly in the nuclear sector. This positive financial performance suggests that Babcock is on track to outperform market expectations.
Furthermore, the company’s management is optimistic about future opportunities both domestically and internationally. With a solid backlog cover and potential extensions and tenders in the pipeline, such as the FMSP extension and the Cavendish Nuclear tender, Babcock is well-positioned for continued growth. Additionally, ongoing discussions on significant international shipbuilding projects support the Marine Division’s ambitious revenue goals, further justifying the Buy rating.
In another report released on November 17, RBC Capital also maintained a Buy rating on the stock with a p1,200.00 price target.
Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BAB in relation to earlier this year.