Broker tips: Aggreko, Imagination Tech, Lancashire

19th Jun 2013 11:57

UBS has cut its recommendation for temperature control and power solutions firm Aggreko from 'buy' to 'neutral' and lowered its target price from 1,975p to 1,850p, saying the company faces headwinds next year."Whilst the longer-term story based on structural growth and sustainable returns remains attractive, AGK now trades on c19x forward price-to-earnings ratio, in line with the three-year average, despite a subdued International Power Projects (IPP) environment and headwinds to FY14 estimates, in our view."Peel Hunt has kept its 'buy' rating and 630p target price for chip designer Imagination Technologies following the group's annual results on Wednesday, saying that shares are undervalued."IMG is well exposed to many of the key technology trends and over the next few years will diversify beyond graphics and into new classes of device. In our view, the shares are undervalued, particularly given the model's long-term margin potential," the broker said.JPMorgan Cazenove has cut its recommendation for insurance firm Lancashire Holdings from 'overweight' to 'neutral' given its premium multiple ahead of hurricane season as well as a full valuation.After cutting its target price from 860p to 800p due to the impact of softening rates, the broker said that current prices offer limited upside of just 2.0%.