- Babcock International Group
- 21 May 2025 12:46:06
Source: Sharecast
The bank said it was extending its estimates from YE Mar 28 to YE Mar 31, as it has done for several other defence stocks in recent weeks.
"We also increase our YE Mar 26E to Mar 28 estimated earnings per share by 1%/2%/4% following an upbeat teach-in (May 20th) on Babcock’s Cavendish Nuclear business (7% of group sales)," it said.
"We expect BAB to deliver average EPS growth of 10% for the next five years, with high visibility and reducing execution risk.
"As a result, we now apply a higher target valuation multiple, increasing our multiples-based Dec-26 PT to 1,100p (from 1,000p) for 28% potential upside over the next circa 18 months."
JPM said Babcock remains one of the cheapest European defence stocks in its coverage.
At 1245 BST, the shares were up 3.3% at 888.50p.
JPM rates Babcock at 'overweight'.