Peel Hunt cautious about 2015 outlook at Aggreko

14th Nov 2014 12:24

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.Aggreko kept its full-year profit guidance unchanged, saying it expects 2014 underlying trading profits to be "similar to 2013", when it earned £357m.Reported revenues in the three months to 30 September fell by 3% on last year due to adverse currency movements, compared with 1% growth registered in the first half.Peel Hunt analyst Andrew Nussey said that the statement was in line with expectations and he would be keeping his 2014 pre-tax profit forecast of £280m unchanged, representing a fall from £338m from 2013.However, he 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," Nussy said."Aggreko continues to be a high quality proposition, but the shares, trading on 18 times [estimated 2015 earnings], continue to reflect recovery potential. 'Hold'."The stock was trading 3.2% higher at 1,591p by 12:30.