Broker tips: Aggreko, Unilever, G4S

17th Dec 2012 12:58

Investec has cut its rating for temporary power and temperature control solutions group Aggreko after the company's gloomy pre-close trading update on Monday which sent shares tumbling."The group should deliver its forecast FY12E earnings outcome, but the outlook for FY13E is much more adverse than we expected," said analyst John Lawson."We had assumed that the group would repeat the warning given at the last IMS (such as the tough comparatives) but the group appears much more cautious on the economic outlook," he said.Credit Suisse has upgraded its recommendation for consumer goods giant Unilever from 'underperform' to 'neutral' on the back of the company's new strategy to focus on revenue growth."Unilever has made no secret of its desire to give top billing to revenue growth. The target is to double sales?no time frame but it is a change in mind-set for a group where revenues did not move for a decade. This is a major change for a group that historically has chosen margin over sales - and we think the business looks all the more healthy for it."Galvan Research has labelled G4S as a 'buy', following the recent move by fund manager Invesco Perpetual to raise its stake in the security solutions company."The fact is that regardless of the summer Olympics debacle and post summer upsets that have seen security group G4S lose contracts and money, Invesco Perpetual are still happy to put their money on the line. Clearly the fund manager believes that G4S has a dominant position and is big enough as a company to withstand and overcome such problems, a view that the Galvan Research team also concur with."BC