Broker snap: Aggreko 'high enough' for now

15th Oct 2009 11:40

Aggreko raced ahead today after it raised guidance for the year, convincing Charles Stanley to upgrade its pre-tax forecast for 2009 by 10%.The broker thinks the temporary power supplier will make an annual profit of £236m, up from the £215m forecast previously, but leaves its 2010 estimate unchanged at £190m.Revenues in the three months to 30 September were 8% lower than in 2008 at constant currency, said Aggreko, and were down 16% excluding pass-through fuel. Its International Power Projects business beefed up revenue by about 10%. "The market remains very attracted to Aggreko, but at 15.2x our forecast for next year, the price is high enough," said analysts at Charles Stanley."Next year's figures are likely to be lower, but we don't expect to see many sellers whilst the possibility of further upgrades remains," They maintain their 'hold' recommendation.