Earlier on Monday, Rangers manager Walter Smith remained coy over the chances of a recall for Bougherra, who returned late for international duty for the third time last week.
The Algerian has not played for Rangers since September because of illness, injury and his inability to get back from Africa on time.
And Babbel agreed his continued absence would suit Stuttgart, who were denied an opening victory against Rangers when the defender netted a second-half equaliser.
“Of course, he’s a fantastic player,” Babbel said.
“He scored in the first game and is very strong at the back. If he can’t play, it’s not bad for us.”
However, Babbel feels 17-year-old Danny Wilson has the talent to continue deputising in central defence after again looking assured as Rangers won 3-0 against Kilmarnock.
“I saw the game on Saturday, he’s a big talent,” Babbel said.
“If you can play at 17 years in the Scottish league you have to be good, especially if you play for a team like Glasgow Rangers.”
Babbel’s team were less successful on Saturday, drawing 1-1 at home to bottom club Hertha Berlin to fall into the bottom three of the Bundesliga.
But the former Liverpool defender can find some comfort in facing a Rangers side who are one point worse off than his side in Group G.
“The quality is quite high in the German League, if you watch our games we created many chances, we played quite well but we can’t score all the time,” he said.
“We make easy mistakes and concede goals but I’m confident about this game.
“We are not under pressure, we can play our style of football.
“We know Glasgow Rangers have to do something but we are ready to fight for these three points.”
Stuttgart have three points in the group after also drawing with Sevilla and Unirea Urziceni and Babbel feels their European campaign is suffering from similar failings to their domestic season.
“The first game against Rangers we created many chances, especially in the first half,” he said.
“Against Urziceni we went 1-0 up but couldn’t hold on.
“Against Sevilla at home we played a fantastic game but lost because of easy mistakes and because we couldn’t score enough goals. In Seville we played a fantastic second half but couldn’t win.
“This is our problem – in all these games we had a chance to win. Now is the time to win again.”