Babcock jumps after RBC initiates coverage with ‘outperform’

Babcock International

18/08/2025 10:33

** Shares of British engineering firm Babcock BAB.L rise nearly 5% to 1,042p

** RBC Capital Markets initiates coverage at "outperform" rating and PT 1,200p

** Cites Babcock as a significantly improved business following years of turnaround, yet its valuation remains deeply discounted compared to peers in the European defence sector

** Brokerage highlights co's strong ties with the UK Ministry of Defence, deep engineering expertise, and ownership of key infrastructure as drivers of business stability and visibility

** "This, combined with a strong management team and execution, now provides strong prospects for success on an attractive hopper of opportunities in the UK and abroad," says RBC

** Average rating from nine analysts is "buy"; median PT is 1,180p - data compiled by LSEG

** As of last close, BAB stock is up nearly 107% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))