Update shared on02 Sep 2025
Fair value Increased 2.51%Upward revisions in Babcock International Group’s price target reflect strong results, upgraded guidance, and improved operational confidence, with the consensus fair value rising from £11.58 to £11.87.
Analyst Commentary
- Bullish analysts cited strong company results and upgraded future guidance as a key driver for raising price targets.
- Improved operational performance and robust financial metrics have underpinned increased confidence in the company’s outlook.
- Several target increases reflect heightened sector demand and solid execution on contracts.
- JPMorgan’s significant upward revision signals expectation of sustained positive momentum.
- Bearish analysts, while acknowledging recent strengths, recommend caution due to the sharp rise in share price, suggesting the stock may be due for consolidation.
What's in the News
- Babcock International Group recommended a final dividend of 4.5 pence per share, raising the total dividend for FY2025 to 6.5 pence, a 30% year-on-year increase.
- The company announced a share repurchase program of up to £200 million to reduce cash holdings and the number of shares in issue, aiming to impact future earnings per share, to be executed in FY26.
- The Board of Directors authorized the buyback plan.
Valuation Changes
Summary of Valuation Changes for Babcock International Group
- The Consensus Analyst Price Target has risen slightly from £11.58 to £11.87.
- The Future P/E for Babcock International Group has risen slightly from 22.50x to 23.28x.
- The Consensus Revenue Growth forecasts for Babcock International Group remained effectively unchanged, at 4.5% per annum.
Disclaimer
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