Broker snap: Aggreko rating 'looks full'

17th Dec 2010 12:20

While Aggreko has upped its full-year profit forecasts, Peel Hunt says that despite the upgrades secured in the year, the shares look up with events. The temporary power and temperature control specialist estimates pre-tax profit for the 12 months ending 31 December will be £305m, compared with the broker's forecast of £302m.Andrew Nussey says the International Power Projects business continues to deliver robust growth, the North American division remains strong and conditions in the Local markets are improving.However, despite strong management, excellent global positions and inherent cash generation capabilities, the broker feels the rating is "looking full," trading at 18 times 2011 earnings.The target price of 1,600p is maintained, along with a 'hold' recommendation.