Babcock International Group (LON:BAB) Trading 9.5% Higher Following Analyst Upgrade

Key Points

• Shares rallied 9.5% after Citigroup upgraded Babcock to a buy and set a GBX 1,554 price target, with the stock trading up to GBX 1,268 from a prior close of GBX 1,158.
• Multiple brokers (JPMorgan, Jefferies, Berenberg) have also raised targets into the GBX 1,600–1,700 range, leaving an average analyst rating of Buy and an average target of GBX 1,574.80.
• Babcock’s market metrics show a market cap of £6.32bn and a P/E of 22.72, but high leverage (debt-to-equity 147.82) and weak liquidity (current ratio 0.82, quick ratio 0.76) that could increase financial risk.

Babcock International Group PLC (LON:BAB - Get Free Report) shares shot up 9.5% during trading on Wednesday after Citigroup upgraded the stock to a buy rating. Citigroup now has a GBX 1,554 price target on the stock. Babcock International Group traded as high as GBX 1,268 and last traded at GBX 1,268. 2,818,395 shares changed hands during mid-day trading, a decline of 73% from the average session volume of 10,333,276 shares. The stock had previously closed at GBX 1,158.

Other equities analysts have also issued reports about the company. JPMorgan Chase & Co. boosted their price target on shares of Babcock International Group from GBX 1,600 to GBX 1,700 and gave the stock an "overweight" rating in a research report on Monday, January 26th. Berenberg Bank reiterated a "buy" rating and issued a GBX 1,670 target price on shares of Babcock International Group in a report on Friday, January 23rd. Finally, Jefferies Financial Group increased their target price on shares of Babcock International Group from GBX 1,400 to GBX 1,670 and gave the company a "buy" rating in a research note on Monday, January 26th. Six equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of GBX 1,574.80.

Babcock International Group Stock Up 9.5%

The company has a debt-to-equity ratio of 147.82, a current ratio of 0.82 and a quick ratio of 0.76. The stock has a market cap of £6.32 billion, a price-to-earnings ratio of 22.72, a P/E/G ratio of 1.35 and a beta of 0.94. The business has a fifty day moving average of GBX 1,363.77 and a 200 day moving average of GBX 1,284.03.

About Babcock International Group

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment.

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