Shares in Babcock International surged on Wednesday after the defence company agreed an interim contract with the UK government to maintain naval base and nuclear submarine fleet support services and Citi upgraded the stock to 'buy' from 'neutral'.
Source: Sharecast
A new long-term agreement is in the latter stages of negotiation with the Ministry of Defence after a five-year contract ended on March 31, Babcock said, adding that the government had signed a letter of intent alongside the six-month bridging deal.
Shares in the company were up 8.55% at 1558 BST.
Reporting by Frank Prenesti for Sharecast.com
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