06:50 AM EDT, 05/18/2026 (MT Newswires) -- RBC Capital Markets revised its price target and estimates for Babcock International Group (BAB.L) amid a model update following the British aerospace and defense company's fiscal 2026 post-close trading statement.

"We have increased our FY27/28 EPS estimates by 4% on average reflecting a higher base in FY26 following 1) a consensus beat of 3.1%/5.4%/6.9% on sales/adj. EBIT/adj. EPS and 2) a new GBP200m buyback in FY27. That said we trim our FY27/28 FCF estimates by 5% on average reflecting the higher cash costs for Type31 and a bond refinancing driving a higher interest charge in FY28,"analysts said May 15.

Revenue forecasts for fiscal years 2027 and 2028 were each lifted by 1.8%, along with higher adjusted EBIT expectations for both periods.

"Type31 aside, delivery was solid in FY26 and we maintain our prior view. We still see earnings upgrade potential from an attractive order pipeline, with order wins being the main catalyst for CY26. Reiterate Outperform at an attractive entry point,"analysts said, increasing the stock's price target to 14 pounds sterling from 12.80 pounds.