Jefferies analyst David Farrell has maintained their bullish stance on BAB stock, giving a Buy rating on September 26.
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David Farrell has given his Buy rating due to a combination of factors that highlight Babcock International’s promising performance and outlook. The company’s recent AGM Trading Update suggests that they are on track to meet both their fiscal year 2026 forecast and medium-term guidance, supported by a favorable macroeconomic environment and effective program execution. Notably, the Nuclear division, which is the company’s highest margin segment, is experiencing strong growth despite challenging comparisons, indicating robust operational health.
Furthermore, the first five months of fiscal year 2026 have shown encouraging trading results, with organic revenue growth and improvements in underlying operating margins aligning with board expectations. The Aviation and Marine divisions are also contributing positively, with significant growth in Aviation driven by the French Mentor 2 contract. These factors collectively support the Buy rating, as they demonstrate Babcock’s ability to navigate challenges and capitalize on growth opportunities across its divisions.
In another report released on September 26, Berenberg Bank also maintained a Buy rating on the stock with a £14.40 price target.
BAB’s price has also changed dramatically for the past six months – from p732.500 to p1234.000, which is a 68.46% increase.