Brokers certainly like the stock and trading on a forward P/E of just over 9 going into 2010, far too cheap imho.

Babcock International Group PLC

FORECASTS
2009 2010

Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Arden Partners
12-03-09 BUY 119.00 41.10 13.50 143.00 49.40 15.50

KBC Peel Hunt Ltd
10-03-09 HOLD 118.36 40.40 13.50 140.73 45.24 15.50

Singer Capital Markets Ltd
09-03-09 BUY 120.10 40.50 14.00 144.40 46.90 15.50

Teathers
04-03-09 BUY 120.51 40.33 13.40 146.94 46.96 15.00

ABN AMRO
10-02-09 HOLD 122.90 39.77 12.50 138.90 44.42 15.00

Numis Securities Ltd
21-01-09 ADD 119.80 41.10 13.00 145.40 48.70 14.10

NCB Stockbrokers Ltd
08-01-09 ACCU 41.25 12.45 46.74 14.37

2009 2010
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)
Consensus 119.56 40.68 13.37 144.16 47.29 15.37

1 Month Change 0.19 0.09 0.02 0.01 0.45 0.03
3 Month Change 0.49 -0.04 0.09 -0.07 -0.46 0.19


GROWTH
2008 (A) 2009 (E) 2010 (E)

Norm. EPS 36.83% 44.23% 16.25%
DPS 34.59% 49.38% 14.96%

INVESTMENT RATIOS
2008 (A) 2009 (E) 2010 (E)

EBITDA 135.90m 172.74m 194.28m

EBIT 105.00m 142.06m 162.84m

Dividend Yield 1.97% 2.94% 3.38%

Dividend Cover 3.15x 3.04x 3.08x

PER 16.13x 11.18x 9.62x

PEG 0.44f 0.25f 0.59f

Net Asset Value PS -80.79p 168.28p 185.86p

BAB shorted first thing......

BAB Babcock

Technically uptrend has broken
down and lower indicators are turning
bearish.

Looks a good call GF.

Yep but beware as SC says results tues, mind most results even if good have seen sps slipping. of late.

Bought myself some BAB again. Nice chart with Bullish engulfing candle paving the way. Results were good yesterday aswel.



Like the lower indicators on the Daily Chart.........

BAB BABCOCK INTERNATIONAL GROUP

Bought in here again.

Still way too cheap imo.

Brokers certainly like it.......

Date Company Name Broker Rec. Price Old target price New target price Notes

03 Oct Babcock... JP Morgan Cazenove Overweight 948.50 990.00 990.00 Reiterates
02 Oct Babcock... Charles Stanley Hold 948.50 - - Retains
02 Oct Babcock... Shore Capital Buy 948.50 - - Retains
02 Oct Babcock... Peel Hunt Buy 948.50 975.00 975.00 Reiterates
02 Oct Babcock... Seymour Pierce Buy 948.50 950.00 950.00 Reiterates
02 Oct Babcock... Investec Buy 948.50 970.00 1,000.00 Reiterates
27 Sep Babcock... Goldman Sachs Neutral 948.50 1,036.00 1,097.00 Reiterates

NORWICH & PETERBOROUGH B/S

BABCOCK INTERNATIONAL GROUP

BAB RATIOS

A forward P/E of just 12.8 to
2014 compared to an actual of 21.09
historical in 2012 just shows how
cheap this company is at the moment.

RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £330.90m £392.02m £412.45m
EBIT £216.00m £352.40m £377.20m
Dividend Yield 2.11% 2.62% 2.86%
Dividend Cover 2.25x 2.82x 2.72x
PER 21.09x 13.53x 12.85x
PEG 0.35f 0.24f 2.42f
Net Asset Value PS -271.95p p p

BAB BABCOCK INTERNATIONAL

Looks cheap on a forward P/E to
2014 of just 12.8

Actual in 2012 was a P/E of 21.09

Further scope for a re -rating.

Babcock International Group PLC

FORECASTS 2013 2014
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Panmure Gordon
02-10-12 HOLD 308.00 70.20 25.50 350.00 78.40 28.00
Arden Partners
02-10-12 BUY 316.00 71.00 26.00 320.00 71.96 27.50
N+1 Brewin
01-10-12 ADD 316.70 70.80 23.80 312.40 69.80 25.80
Peel Hunt
01-10-12 BUY 313.11 69.45 24.97 310.73 68.85 27.47
Charles Stanley
28-09-12 HOLD 313.46 68.87 24.56 344.72 74.02 26.82
Shore Capital
28-09-12 BUY 315.50 68.40 25.00 331.90 73.70 27.50
Westhouse Securities
27-09-12 BUY
Seymour Pierce
03-09-12 BUY 317.70 71.00 342.80 75.70
Investec Securities
17-08-12 BUY 312.60 69.10 24.30 342.00 75.40 26.70
Edison Investment Research
25-05-12 None
Numis Securities Ltd
17-05-12 ADD 314.20 68.90 23.00 397.10 76.70 25.00

2013 2014
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 314.12 69.83 24.79 334.70 73.53 26.99
1 Month Change 0.06 0.03 0.02 0.59 0.22 0.01
3 Month Change 1.53 1.13 0.39 -9.70 -0.66 0.30


GROWTH
2012 (A) 2013 (E) 2014 (E)
Norm. EPS 60.79% 55.81% 5.30%
DPS 10.56% 24.55% 8.88%

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £330.90m £392.02m £412.45m
EBIT £216.00m £352.40m £377.20m
Dividend Yield 2.11% 2.62% 2.86%
Dividend Cover 2.25x 2.82x 2.72x
PER 21.09x 13.53x 12.85x
PEG 0.35f 0.24f 2.42f
Net Asset Value PS -271.95p p p

Investors Chronicle.....

IC TIP UPDATES:

Support services giant Babcock International ( BAB ) has issued a solid trading statement for the six months to September. Cash generation has been strong which means debt will fall and the order book has remained solid at £13bn. We keep our buy.

Good call here GF, I was skeptical of this stock... Not sure its worth getting in now though!

Babcock International Group PLC (Babcock)

Babcock to support Hitachi on UK nuclear new-build programme

Babcock, the UK's leading engineering support services company, announces that it has signed a Memorandum of Understanding to join with Hitachi Ltd (Hitachi) to plan and deliver its new nuclear reactors in the UK. The agreement follows the announcement of Hitachi's acquisition of Horizon Nuclear Power.

Under the terms of the agreement, Babcock will discuss with Hitachi and its partners, including Rolls Royce, how its skills and capabilities can be best used to support the delivery of Hitachi's nuclear new build programme in the UK.

Peter Rogers, Chief Executive of Babcock commented:
"We are delighted to be working in partnership with Hitachi, a recognised leader in the global nuclear market. Our significant experience in the UK nuclear sector complements the international experience of Hitachi. We look forward to exploring how our skills, capabilities and experience can contribute to the delivery of this project of national strategic importance, meeting the future energy demands of the UK and creating long-term opportunities for UK companies."

Ends

Interim Management Statement

Overview

The Group has traded well during the period. We remain confident of meeting our expectations for this financial year, as set out at the time of our half year results announced on 6 November 2012, and of delivering strong progress on last year. Market conditions remain positive, bidding activity is high across the Group and we continue to track significant new outsourcing opportunities.

StockMarketWire.com
Engineering support services company Babcock International said trading in its markets for the half year ending 30th September 2013 has remained positive.

There has been no material change in the Group's financial position as set out in the Interim Management Statement on 11th July 2013.

The Board remains confident that the Group will continue to make further strong progress and that results for the 2013/14 financial year will be in line with its expectations.

Babcock will release its half year results on Tuesday 12th November 2013.

StockMarketWire.com
Infrastructure group Babcock International said today that total revenue for the year to end-March was £3.547bn which represents growth of 9%.

Adjusting for movements in foreign exchange growth was 11% (2013: 7%)

Underlying operating profit increased by 9% to £377.9 million (2013: £345.6 million) which gave a Group operating return on revenue of 10.7% (2013: 10.7%). Excluding the effect of foreign exchange movements growth in operating profit was 11% (2013: 15%).

Profit before tax, amortisation of acquired intangibles and exceptional charges increased by 15% to £316.1 million (2013: £275.0 million).

Peter Rogers, CEO, commented:

"Babcock maintained its record of delivering strong revenue and profit growth with all our divisions making progress, building on our leading position in engineering support services. We produced a top-class financial performance, driving strong cash flow and cash conversion, delivering another year of growth in shareholder value.

Our markets remain buoyant and we enter the new financial year with a powerful platform for further growth in the UK and overseas. Building on the strong growth in revenue and earnings delivered in the 2013/14 financial year, the Board is confident the Group will continue to make further strong progress in the 2014/15 financial year."

Ex divi wed 2nd July 2014 (16.4p)

Babcock - just a note on the potential yes vote to Scottish Independence.

Babcock International is the owner of the Rosyth Dockyard in Fife and has cautioned that independence could potentially mean the end of its Royal Navy contracts. Michael Fallon has said that "UK warships are only built in UK shipyards" and there is a concern that an independence vote will threaten shipbuilding in Scotland. The Group has already engaged in discussions with unions about the potential impact of a Yes vote on its business. Operations in Clyde, Coulport and Faslane will also be at risk. Around 4,750 staff are employed in Scotland.

StockMarketWire.com
Babcock reports continued good growth from core businesses in the six months to the end of September enhanced by strong performance from Avincis.

Total revenue for the first half increased by 24% to £2,103.2 million (2013: £1,700.6 million), which includes £263.6 million of revenue from Avincis from 16 May 2014.

The Babcock businesses excluding Avincis, delivered strong revenue growth for the first half of 10% at a constant exchange rate, slightly ahead of the 9% growth achieved in same period last year.

Babcock said the main contributor to this growth was the Support Services division which reported a 13% increase in revenue benefiting from increased activity at its subsidiary Cavendish Nuclear as well as from its fleet support activities and a full period contribution from the Conbras business in Brazil.

The Marine and Technology division also continued to progress well delivering 11% growth in revenue mainly as a result of increased warship refit activities, including the Queen Elizabeth class (QEC) aircraft carrier programme, and growing commercial activities. Despite strong growth in Support Services and Marine and Technology, the Group's revenue growth was offset by ongoing weakness in the South African Rand. Within the International division, the South African business achieved a 11% increase in revenue in local currency, although this translated into a 7% reduction in revenue in Sterling terms.

Total underlying operating profit for the Group increased by 39% to £239.5 million (2013: £172.8 million ). Excluding Avincis, operating profit increased by 10% on a constant exchange rate basis. The Defence and Security division achieved a 6% increase in operating profit, benefiting in particular from achieving milestones within the FSTA programme.

For the Support Services division, despite strong growth in revenue, profits were diluted by low margin take in the early stages of new contracts, particularly within Cavendish Nuclear and the Critical Services business.

The Group operating margin increased to 11.4%, benefiting from strong operating margins in the Avincis business of 19.9%, which benefited from firefighting activities during the summer months. Excluding Avincis, the operating margin for the Babcock business remained stable at 10.2% (2013: 10.2%).

Total net finance costs were £52.5 million (2013: £31.1 million) reflecting the increase in total Group debt following the acquisition of Avincis. This includes Group finance costs, including Avincis costs, of £31.4 million (2013: £13.0 million). jv interest costs increased to £15.6 million due to fair value movements on interest rate swaps (2013: £12.7 million) and retirement benefit interest remained broadly in line with last year at £5.5 million (2013: £5.4 million).

Babcock said: "During the first half, following completion of the acquisition, we made good progress refinancing Avincis' debt. We repaid and cancelled two revolving credit facilities for 145 million and £25 million as well as the 470 million and £260 million high yield notes.

"We successfully issued a 550 million bond, the proceeds from which were used to pay off part of the £900 million bridge facility with the remainder expected to be repaid before the year end. These actions achieved the £35 million of interest synergies targeted at the time of acquisition."

Chief executive Peter Rogers said: "In the first half, Babcock further strengthened its position as Britain's leading engineering services group while strengthening its international position with the acquisition of Avincis.

"We achieved strong organic growth in both revenue and profit, with all our existing core businesses continuing to move forward. Avincis made an excellent start under our ownership and has fulfilled our expectations at the time of acquisition.

"Our markets remain buoyant and our increased dividend reflects the Board's confidence that we will continue to make strong progress this year and deliver results in line with our expectations."

Interim dividend
As the Group continues to make strong progress and with visibility remaining excellent, the Board's confidence is reflected in a 10% increase in the half year dividend to 5.5 pence per share (2013: 5.0 pence per share restated to reflect rights issue). This will be paid on 14 January 2015 to shareholders on the register at 12 December 2014.

StockMarketWire.com
Babcock has confirmed it has entered into contracts with the UK Ministry of Defence for the acquisition of the Defence Support Group and its associated service provision contract.

Through this, Babcock will exclusively provide the maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons.

This follows an announcement made on 19 November.

Babcock will acquire DSG for a consideration of £140 million and estimates that the service provision contract and output based services will be worth c £2 billion over ten years. It is expected the acquisition will complete on 31 March 2015 and the service provision contract will start on 1 April 2015.

StockMarketWire.com
Engineering support services group Babcock International continues to experience strong demand for its services through existing contracts and bidding and business development activities remain buoyant.

The group says that following a strong performance in the first half of the 2014-15 financial year from all the Babcock businesses and the Avincis acquisition, it has continued to trade well since the start of October.

It says the board remains confident that the results for this financial year will be in line with its expectations as set out at the time of the half year results announcement on 20 November.

It says: "We entered the fourth quarter with an order book of c £20 billion and a bid pipeline of c £13 billion, which combined is a new high for the Group. The group's order book now provides visibility of over 70% of anticipated revenue for the 2015/16 financial year."