Aggreko beats forecasts but UBS cuts target on FX headwinds

7th Mar 2014 10:16

Temporary power and temperature control firm Aggreko was pulling back slightly on Friday after strong gains the day before as UBS lowered its price target for the stock on the back of currency movements following its 2013 results.The stock jumped 3.5% on Thursday after Aggreko said that profit before tax (PBT) last year totalled £338m, compared with the pre-close guidance of "at least £335m" and UBS's forecast for £336m.Meanwhile, net debt was dropped by 39% to £363m, versus guidance for "below £400m" and UBS's £393m estimate.The company also pleased investors with a £200m cash return, equivalent to 75p per share, and a 10% increase in the dividend.Nevertheless, UBS has lowered its PBT forecasts for 2014 and 2015 by 7% and 8%, leading to a reduction in its price target from 1,680p to 1,550p."Management expects 2014 trading profit in constant currency terms to be at a similar level to 2013, but given movements in FX, there is likely to be a marked translational impact on 2014 reported results," the bank said.A 'neutral' rating on the stock was maintained.The shares were down 0.3% at 1,623p by 10:45.BC