Berenberg ups Babcock target price, says company delivering on turnaround plan

Foremost, they highlighted how the company had been delivering on the turnaround plan announced by its new management in 2021.

Furthermore, the disposal programme had been upsized by more than half to £640m, cash flow stretches of about €470m had been unwound, its free cash flow had inflected and the balance sheet was in a much stronger position.

They also termed the company's medium-term guidance for the first time "an important milestone".

And trading on a price-to-earnings multiple of 9.4 the shares remained "attractively" valued.

Indeed, they estimated the discount that they were trading at versus UK defence sector peers for 2035 at 30%.

On the back of all of the above they upped their target price from 400.0p to 450.0p and reiterated their recommendation to 'buy'.