Broker tips: Aggreko, SABMiller, Dairy Crest

14th Nov 2014 13:17

Third-quarter results from Aggreko were well-received by the market on Friday, but analysts at Peel Hunt chose to keep a 'hold' rating on the temporary power and temperature control group due to a cautious outlook.Peel Hunt analyst Andrew Nussey said that the statement was in line with expectations but highlighted Aggreko's comments about an "uncertain" environment in the power projects division. "We are mindful that the outlook for 2015 remains uncertain, given geopolitical risks and customer hesitancy," Nussey said.Investec has reiterated its 'sell' recommendation on SABMiller after interim results from the brewing giant missed the market's expectations, with the broker saying that its valuation "looks stretched"."While we keep our below-consensus estimates intact courtesy of lower tax and interest rate guidance, the valuation still looks stretched to us in a low-growth world where competition is hotting up. In this regard, the arrival of a well-armed new entrant in SAB's most profitable market, Colombia, looks threatening. We stay sellers."Shares in Dairy Crest received a boost from Credit Suisse on Friday as the bank raised its rating for the cheese, spreads and dairy-products group and speculated about a potential takeover offer from a larger food group.Dairy Crest's move to sell its dairies division to Muller results in a far more focused business on cheese and spreads, but could leave the company "vulnerable" to outside interest, the bank said. "There are active consolidators out there in both cheese and spreads (Lactalis and Kerry leap to mind)," it said.