Technical patterns as well as solid fundamentals lead us to forecast a rebound.

From a fundamental viewpoint, the company is characterized by a great growth and a strong profitability. Upward revisions have been made on EPS and sales on a two-year horizon. Sales for the ongoing fiscal year should advance toward GBP 4.5 billion against 3.5 billion last year, which means a progression of + 27.4%. EPS should reach GBp 58.2 during the current year, compared to GBp 49.8 last year. The debt is also expected to decrease, to represent 0.88 times the EBITDA in 2016 compared to 1,37 in 2014.

Recently, a downward movement brought prices close to the midterm support at GBp 1060, which acts as a protection wall from the downtrend. This area is expected to annihilate bearish possibilities and thus result in a bullish reversal. The crossing of the GBp 1093 short term resistance at the beginning of the session could be interpreted as a buy signal. Technical indicators enable to take GBp 1166 as bullish target.

According to fundamental and technical analysis, timing seems suitable for buying Babcock International's shares at the current prices. The bullish target could be set over the GBp 1166 midterm resistance with a stop-loss order under the midterm support.