Analyst Chloe Lemaire from Jefferies maintained a Buy rating on Babcock International (BAB – Research Report) and keeping the price target at p770.00.
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Chloe Lemaire’s rating is based on several positive developments surrounding Babcock International’s financial outlook. The company’s recent trading statement reveals that its expected revenues for FY25 are surpassing consensus forecasts, reaching approximately £4.9 billion, which is a 5% increase compared to the consensus estimates. This growth is largely driven by significant advancements in their Nuclear segment, which is expected to see double-digit growth, alongside a robust performance in their Marine sector.
Moreover, Babcock International’s operating profit is projected to exceed the top end of consensus expectations, anticipated to be around £339.7 million. This further reinforces the company’s strong financial position. Additionally, progress in key projects such as Mentor 2 and the integration of Type 31 without new charges underscores operational efficiency and strategic execution. These factors combined present a compelling investment case, justifying Chloe Lemaire’s Buy rating for the stock.
Lemaire covers the Industrials sector, focusing on stocks such as Airbus Group SE, Rolls-Royce Holdings, and BAE Systems. According to TipRanks, Lemaire has an average return of 31.2% and a 91.67% success rate on recommended stocks.