The company Babcock International Group has an important growth potential and could benefit from a technical rebound.

The multinational complex asset and infrastructure manager is characterized by great growth and strong profitability. According to Surperformance ratings, upward revisions have been made on EPS and earnings in a two-year horizon. Sales for the ongoing fiscal year should advance by more than 25%. Moreover, Goldman Sachs changed its opinion on Babcock International, setting its price target to GBp 1380, while analysts’ consensus is evaluated at GBp 1330.00. Thus, it represents a great gain potential.

From a technical point of view, the evolution of the equity brought prices recently close to the midterm support line at GBp 1020, which acts as a protection wall from the downtrend. This area is expected to annihilate bearish possibilities and thus result in a bullish reversal. Technical indicators allow aiming bullish targets at GBp 1091, and later the medium-term resistance at GBp 1134.00.

Therefore, a buyer position could be taken over the short-term support at GBp 1020. The main target will be set at GBp 1091.00 with a second objective at GBp 1134.00. The stop-loss around GBp 995.00 could be triggered once the support broke.