Babcock International Group PLC : A steady bullish trend

01/03/2013 | 03:38am Opinion : Bullish above 1002 GBp Target price : 1100 GBp Potential: 10.50% Stop loss: 971.94 GBp

LONDON STOCK EXCHANGE Business Support / Supplies

Babcock International Group could exceed the symbolic threshold of GBp 1002.

From a fundamental viewpoint, the group is in a good financial situation. Analysts revised upward in recent times their earnings per share estimates, which is a reliable indicator reflecting the company is healthy.

Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. The move could be continued, supported by the 20-day moving average, and return to its highest price levels.

Exceeding the technical line at GBp 1002 would point to ambitious upward targets. In this case, market participants could buy this stock with an initial target of GBp 1100. If investors reduce long-side exposure for profit-taking, a bearish trend would happen below GBp 965.5 and so this strategy would be invalidated.

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