Babcock International Group stock is likely to rally on the upcoming trading sessions.

The company displays solid fundamentals with attractive valuation and strong profitability. EPS are expected to increase from 49.8 to 58.3 pence. Analysts keep a buyer bias and target GBp 1320.

Graphically, prices fell sharply upcon contact with the GBp 1195 resistance and the stock is now in an oversold situation. The stock seems ready to rebound with the GBp 1047 as a support. The bullish movement should continue to hit the GBp 1125 short term resistance.

Therefore, it would be opportune to open a long position on the stock in order to benefit from the potential rebound. The target price will be set at GBp 1125 and a stop loss will be placed under GBp 1047.