Broker tips: Aggreko, Croda, Debenhams

12th Apr 2013 10:44

There will be no upgrades yet for Aggreko after a decent first quarter, but upside risk is building, according to Jefferies which reiterated its 'buy' rating and 2,200p target price for the stock."We estimate that the new strategic plan implies a five-year 15% earnings per share (EPS) compound annual growth rate (CAGR), Currently, given a weak 2013, our forecasts show a FY12-15F EPS CAGR of 4.0%. On this basis, when considering management's track record of meeting and exceeding plans, we feel that there is upside risk to forecasts."UBS has lowered its recommendation for chemicals group Croda International from 'neutral' to 'sell', saying that it is awaiting evidence of growth.The broker explained that Croda has enjoyed a 12-month re-rating from trading at 16 times consensus 2013 earnings to 20 times. "That said, this was accompanied by largely flat/declining earnings (only one clean beat over past seven results releases). We believe Croda therefore needs to at least deliver consistent growth or regain momentum."Ahead of Debenhams' first-half results on April 18th, Panmure Gordon has trimmed its estimates for the department-store company and kept its 'hold' rating."We [...] expect few surprises next week: this could be an opportunity for Debenhams management to reassure the markets. However, we continue to see what we would consider to be above-average levels of discounting on the High Street with Debenhams leading the pack."BC