MARKET TALK: Morgan Stanley Starts Aggreko At Equalweight

21st Jul 2010 07:52

0652 GMT [Dow Jones] Morgan Stanley initiates Aggreko (AGK.LN) at equalweight with a 1600p target. Says Aggreko is a high quality business with significant long-term growth potential, and offers exposure to the trend of a global shortfall in power generation. However, "the downside risks cannot be ignored, namely, new competition and political upset in the IPP business, and further cyclical pressures in the local division." Says the risk-reward is too balanced for a buy rating. Shares closed at 1540p Tuesday. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 21, 2010 02:52 ET (06:52 GMT)