MARKET TALK: Shore Keeps Babcock At Buy Post Update

8th Jul 2010 08:08

0708 GMT [Dow Jones] Babcock (BAB.LN) issues a trading update for its first quarter, and business performance appears in line with expectation, says Shore Capital. Adds cash generation continues, the order book remains at GBP8.3B, and the bid pipeline remains 'healthy' according to the management. Says Babcock continues to pay down debt to facilitate the acquisition of VT Group (VTG.LN). Expects some short term challenges from contract and program changes, but sees the combined group becoming a more effective competitor in the market through greater economies of scale. Keeps a buy rating. Shares +0.3% at 621p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 08, 2010 03:08 ET (07:08 GMT)