The week’s best buys

Babcock International The Times

Babcock has been “unfairly classed in with other outsourcers”. Visibility of future earnings has improved: the group has a £19bn order book, with resilient long-term UK defence contracts. Undervalued. Buy. 838.50p.

Go-ahead Group The Mail on Sunday

Shares in the public transport firm have fallen 30% this year. But broker Jefferies reckons this is an opportunity: it sees “solid prospects” for the bus division and expects the group to sustain the dividend. Buy. £16.20.

Impax Asset Management Investors Chronicle

After a “transformative acquisition” of US rival fund manager Pax, the sustainable investment specialist looks “even more likely to deliver” on ambitious growth forecasts. Profits should rise to £15.6m. Buy. 128p.

M.P. Evans Shares

The Indonesian palm oil producer’s profits have more than tripled as crops surge and prices strengthen. A 10,000acre new plantation should immediately contribute to crops, production and cash inflows. Buy. 745p.

Rentokil Initial The Daily Telegraph

The pest control specialist is “resilient in the face of economic downturns”, with a strong global presence, and is expanding by acquisition. Credible margin targets signal “scope for further improvement”. Buy. 293.3p.

Speedy Hire The Times

Shares in the plant hire firm have not yet responded to its revival. With revenues 7.5% ahead, improving utilisation rates, and costs under control, profits are set for progress. Shares should respond. Buy. 51.75p.