Broker snap: Aggreko's a 'quality stock', says Investec

2nd Aug 2012 10:54

Investec has said that a lack of upgrades for consensus forecasts at Aggreko may disappoint, but the broker says that the first-half results from the temporary power and temperature controls group were strong.Pre-tax profits in the first six months increased 23% to £148m as forecast and a 30% rise in earnings per share (EPS) to 41.5p was expected. Net debt came in at £678m, lower than Investec's £719m estimate."Aggreko has had an excellent first half, with a 30% lift in EPS (as expected), and remains confident of delivering a strong full-year performance," said analyst John Lawson. "Within the mix, the IPP order book is at record levels (39,000 MW months or 14 months of revenues at the current run rate) and, whilst the group is relatively cautious on the outlook for the Local Business (largely economic related), this unit had a good H1 (+23% lift in profits)," he said.Investec makes no forecasts changes today ("a lack of upgradesmight disappoint some") but it's 'buy' rating and cashflow-based target price of 2,520p remain unchanged.By 11:43, shares were trading 1.08% lower 2,097p.BC