Qualitative fundamentals like growth, EPS revisions and sales argue for a recovery in prices.

The growth of the group represents a catalyst for further rises in prices. Indeed, expectations for coming years shows an increase in revenues and earnings. In addition, analysts revised upwards their forecasts on EPS and Sales over the last 4 months.

From a technical viewpoint, Babcock International Group's shares remain close to an important support area (GBp 1178). The latter brings an additional argument for a bullish rebound in prices, especially since the equity is still having sound fundamentals. The fall registered on recent sessions represents a key entry point with a target at GBp 1251 and by extension GBp 1297.

Fundamentals on the group induce long positions to be opened in Babcock International's shares. The GBp 1178 support lift prices and could extend the bullish movement of last weeks. The aim of the rebound corresponds to the GBp 1251 level with a stop-loss order under the GBp 1178.