Deutsche Bank downgraded shares of defence firm Babcock International on Friday to ‘hold’ from ‘buy’, saying it was pausing for breath, but lifted the price target to 1,115p from 965p.
Babcock International Group
27 June 2025 15:47:45
Source: Sharecast
It said Babcock delivered full-year results in line with guidance in April, with double-digit organic revenue growth and 50 basis points EBIT margin uplift during the year "a testament to strong operational performance".
"Reflecting this strength of delivery, management raised its medium-term EBIT margin guidance to 9% (previously 8%), keeping its mid single-digit organic growth and more than 80% OCF targets unchanged," DB said.
It also noted that Babcock launched a £200m buyback, saying this evidenced the transformed balance sheet offering capital allocation optionality.
Deutsche said it was increased its FY26-27 earnings per share estimates by 4-9%.
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