Stock of the week: Babcock International
Engineering support services company, Babcock International, last week announced that it has been awarded a five-year contract, with an option to extend for a further two years, to support Qantas Group’s ground support equipment (GSE) fleet at 60 locations across Australia.
This move follows a number of significant contract wins allowing the group to expand its international operations. Furthermore, the strong order book and size of the projects provides a level of visibility for the company’s future.
Babcock International has a diversified product base with growing hopes for, in the long term, more opportunities in the nuclear area. Due to this, we recommend the company as a “buy” for the long term.