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Prime Markets in The Press - Babcock (BAB)

28/09/2011

Shares in Babcock International gain 1.9 percent, outperforming a 0.2 percent weaker FTSE 250 index, as the engineering support services firm issues a resillient pre-close season trading update, prompting Espirito Santo Investment Bank to reiterate its "buy" rating on the stock.

Babcock says its financial performance remains consistent with its expectations, with its order book remaining strong at around 12 billion pounds, and it expects to see a further reduction in net debt at the half-year.

"We view today's statement as positive confirmation of the group's continued resilient growth characteristics," Espirito Santo says in a note. "In an uncertain economic environment, we believe the group's defensive growth characteristics continue to provide added attraction."

CFD specialist Prime Markets also repeats a "buy" stance on Babcock.

"The exceptionally bullish fundamentals are backed by solid charting support, and after the markets-driven retracement in the share price, at 616 pence Babcock shares are not only great value, but look well placed for further near-term growth," says Richard Curr, head of dealing at Prime Markets.

Reuters

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