Babcock has been "oversold", says Investec after solid Q1

21st Jul 2014 10:55

The recent falls in the share price of Babcock have been "overdone", according to Investec, after the engineering services group delivered a solid first-quarter update on Monday."The message from Babcock remains consistent and we believe that the stock has been oversold, so we maintain our 'buy' and reiterate our 1377p [...] target price," said Analyst John Lawson.As of Friday's close, the stock had fallen by 19% so far this year, down 10% over the last three months alone.The group, which works in the defence, energy, transport and telecoms sectors, said that its order book has grown to £13.5bn since the start of April, up 17% from £11.5bn at the end of the fourth quarter."The order book remains robust (valued at £13.5bn), which gives the group good forward earnings visibility for FY15, and the pipeline remains encouraging (despite not winning/retaining the defence estates work)."The stock was up 1.1% at 1,112p by 10:54.BC