Babcock International Group PLC : Encouraging guidance
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,037 | GBX 1,091 | GBX 995 | +5.21% |
The multinational complex asset and infrastructure manager is characterized by great growth and strong profitability. According to Surperformance ratings, upward revisions have been made on EPS and earnings in a two-year horizon. Sales for the ongoing fiscal year should advance by more than 25%. Moreover, Goldman Sachs changed its opinion on Babcock International, setting its price target to GBp 1380, while analysts’ consensus is evaluated at GBp 1330.00. Thus, it represents a great gain potential.
From a technical point of view, the evolution of the equity brought prices recently close to the midterm support line at GBp 1020, which acts as a protection wall from the downtrend. This area is expected to annihilate bearish possibilities and thus result in a bullish reversal. Technical indicators allow aiming bullish targets at GBp 1091, and later the medium-term resistance at GBp 1134.00.
Therefore, a buyer position could be taken over the short-term support at GBp 1020. The main target will be set at GBp 1091.00 with a second objective at GBp 1134.00. The stop-loss around GBp 995.00 could be triggered once the support broke.