Broker snap: Hold on to Aggreko

8th Jun 2010 13:20

Panmure Gordon looks set to lift its earnings estimates for Aggreko after the temporary power solutions provider weighed in with another impressive trading update."With a number of large projects both ending and starting during H1 [first half], interim results may well hide the underlying progress of the business given the lower utilisation from moving kit around, though H2 could be dramatically higher even before any potential for US hurricane season. Our forecasts and target price are set to rise accordingly," the broker said.Panmure Gordon reckons the outlook for the second half of Aggreko's financial year "looks incredibly positive" and is anxious to learn more at Wednesday's analyst visit.The broker is sticking with its "hold" recommendation, however, as the shares have shot up by a fifth already in the last month, though it is contemplating bumping up its price target to around 1460p from 1212p, a price the shares have long since left behind."With longer term energy requirements unlikely to dampen given the background for infrastructure spending patterns and the likelihood for US storm revenue to be a positive given last year's inactivity, we believe Aggreko remains a high quality situation," the broker said.