MARKET TALK: KBC Peel Hunt Raises Babcock Price Target

14th Jul 2010 12:01

1101 GMT [Dow Jones] KBC Peel Hunt raises Babcock (BAB.LN) price target to 700p from 650p. Reckons the acquisition of VT Group (VTG.LN) brings significant strategic and operational benefits. KBC thinks the guided synergy benefits of GBP50M per annum pretax and GBP8M of financial savings after three years is cautious given the combined cost base and management track record. Adds the stock's valuation represents good value given Babcock's leading positions, strong forward order book and realizable energy savings. Reiterates buy. Shares -1.2% at 628p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 14, 2010 07:01 ET (11:01 GMT)