Four to buy
This engineering-services group has endured a fraught few years but is now embarking on “a major recovery”. Disposals have refocused the business on the defence sector, an area now comprising 66% of group sales. Babcock’s know-how in marine engineering and nuclear submarine maintenance will be in strong demand as the Ministry of Defence concentrates on rising global threats. On a 2024 price/earnings (p/e) ratio of 8.5, the shares trade on a discount to defence-sector peers and could rerate
