Broker tips: Aggreko, Ocado, Home Retail

14th Mar 2013 11:06

Jefferies has maintained its 'buy' rating and 2,200p target price for temporary power and temperature control group Aggreko after the company announced a power-supply contract with utility companies in Southern Africa on Thursday."While a degree of contract wins are required to meet consensus numbers, meaning we do not anticipate changes here, this contract win is very helpful for sentiment and applies upside risk to FY14F consensus earnings," the broker said.Shares in online grocer Ocado rocketed on Thursday morning after the company confirmed alongside its first-quarter update that it would help supermarket chain Morrison to launch an internet shopping website, something that could be a "game changer", according to Prime Markets.Curr said that the uptrend in revenues, orders and volumes as well as a potential tie-up with Morrison means that the company is "coming of age".Argos and Homebase owner Home Retail impressed the market on Thursday after raising its profit guidance for the second time this year, but Panmure Gordon chose to reiterate its 'sell' rating for the stock, telling investors not to get carried away.The broker said that the turnaround at Argos will "take too long" and it will never be the 'digital leader' that it hopes to be. "We think that there is too much to do, digital disruption will change too much in the next five years and the competition is too fierce and nimble."BC