Broker tips: Aggreko, Hays, Mondi

12th Apr 2012 11:06

Prime Markets has reiterated its buy recommendation for temporary power and temperature control solutions group Aggreko, impressed by the firm's strong start the year."The sheer momentum currently behind Aggreko is so strong, that the trials and tribulations of the Eurozone and subsequent market crash have gone all but unnoticed," said Prime Markets' Richard Curr.Prime Markets expects the stock to hit its near-term target of 2,360p in the next week or so.Jefferies has raised its earnings per share (EPS) forecast for recruitment firm Hays after better-than-expected results in the third quarter."In our view, net fee growth has bottomed out at a higher level than feared at the end of 2011, and consequently we have raised our Q412E estimate to 5% (from 2%) and FY13E to 5% (from 0%)," the broker said.The broker has maintained its buy recommendation on the stock but raised its target price from 110p to 120p.UBS has raised its tagged for paper and packaging firm Mondi from 550p to 570p after the group yesterday raised its holding in Mondi Swiecie. A neutral rating is kept.The acquisition of an additional 27.2% of the issued share capital of Mondi Swiecie has raised the firm's total interest in its subsidiary to 93.2%, and has cost Mondi around €235m. "We are attracted by Mondi's low cost position, strong balance sheet, restructuring actions (likethe Swiecie acquisition), and strong management. However, we see value as less compelling after its recent strong performance and given still uncertain macro/mixed pricing dynamic."BC