Australian investment bank Babcock & Brown has sharply raised its 2006 profit growth forecast today on strong fee income to send its shares up nearly 12 per cent.
Babcock, which listed on the Australian Stock Exchange in 2004, expected 2006 earnings per share growth of at least 35 per cent, compared to a previous target of 20 per cent, Chief Executive Phil Green told shareholders.
He said it was too early for a 2007 earnings forecast.
Analysts had forecast, on average, group net profit to rise 27 per cent to about 320 million Australian dollars ($242 million) in 2006 from 251.6 million Australian dollars last year, according to four brokerage reports.
The investment and advisory firm, which this week sealed a bid for Eircom, said it expected to list up to five investment funds this year and that some of those managed funds might be destined for either the London, Singapore or Euronext stock exchanges.
Eircom Group advised its investors this week to accept an offer by Babcock & Brown Capital, an investment fund managed by the bank. The bid valued Eircom at €2.42 billion.