Why Babcock share price rally may not be over
It's the second-best FTSE All Share performer in 2025 so far, and independent analyst Alistair Strang has run his software to generate a new set of targets.
26th June 2025 07:45
by Alistair Strang from Trends and Targets
With a perfect lack of good timing, Babcock International Group (LSE:BAB) chose the wrong FTSE session to show off some polished results, along with news of a share buyback.
Still, they closed the session up 10.75% which didn’t stink, especially as the FTSE 100 could only manage a -0.46% day! But what really caught our attention was we’d reviewed the company just three months ago, giving 1,042p as a fairly major target, a share price the company has spent most of June bouncing around. In other words, it was certainly time for a smug grin.
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Babcock, whose share price has doubled this year, certainly are luxuriating in the threat of increasing military tensions, along with the US administration “suggesting” a commitment of 5% of GDP be spent on defence.
However, by moving beyond our previous 1,042p, Babcock's share price is in a zone where movement next above 1,176p should next provoke gains to an initial 1,260p, along with some almost certain hesitation.
Our secondary, should the share price close above such a level calculates at a future 1,528p. This would represent a new high, doubtless forcing us to once again visit Babcock and review their share price.
If things intend to go wrong, the price needs to fall below a ridiculous sounding and looking 512p.
For now, it appears while Babcock shall doubtless experience the travails of an often insane FTSE 100, the long-term underlying trend seems to be pushing upward and, even though there’s an expectation some dramatic drops will doubtless ensue in the months ahead, we’re more focussed on the future. Unless, of course, if discovers an excuse to visit below 512p. Early warning will come with movement below a silly sounding 615p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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