AGK.L Share News (AGK)

(ShareCast News) - Morgan Stanley downgraded TUI to 'equalweight' as it expects the travel group's heavy investment programme will dilute cash flow and earnings per share.The rating on the Anglo-German tour operator was cut from a previous 'overweight' rating and its price target cut to 1,100p from 1,200p.While the company has had a strong year and is on track once again to exceed its 10% EBIT growth target, and in 2017 it should benefit from further merger synergies, new cruise ships, savings in Germany and France returning to a profit, there were still doubts. Morgan Stanley thinks TUI will spend the €1.5bn proceeds from the HotelBeds disposal "on a heavy capex programme rather than M&A or cash returns, meaning the EPS dilution may be permanent, and FCF will remain poor".Other downsides are the likelihood the UK will suffer from the weak pound, there is more competition coming from Jet2in the UK and Ryanair in Germany and that rebranding Thomson to TUI in the UK could bring some risk.Although TUI looks cheap on a 1.0 times p/e-to-growth ratio and offers an attractive 5.5% 2017 dividend yield, peers such as Thomas Cook and the airline stocks have derated "and while TUI's Hotels and Cruise operations are more highly rated, its FCF is weak".Jefferies upgraded Aggreko from 'underperform' to 'hold' but maintained its price target of 750p.The broker cut its earnings per share estimate for 2017 to 60.15p from 66.71p and for 2018 from 72.47p to 66.27p. The 2017 forecast was 3-5% lower than the consensus.The third quarter interim management statement (IMS) provided visibility over concerns surrounding the company's Argentina contract being re-tendered at lower rates and the 'difficult' collection of the venezuelan debt, Jefferies said.The broker's base case for Argentina called for a reduction from around £75m in earnings before interest tax and amortisation (EBITDA) to £20m and for a £20m write off for Venezuela, resulting in a £212m profit before tax for the full year in 2017.Jefferies also cautioned that "we still worry about an oversupplied market with flaccid demand, although helpfully we estimate that the key turnkey competitor, APR Energy, has utilisation of 60% potentially improving to 75%."Returns look to have been structurally impaired, but the 11-12% post tax return on invested capital (ROIC) is still reasonable and yields an enterprise value/invested capital (EV/IC) ratio of 1.5, analysts Will Kirkness and Kean Marden said in a report sent to clients.Liberum downgraded Boohoo.com to 'hold' from 'buy' on valuation grounds after the stock rose more than 216% year-to-date.In a note on clothing retailers, Liberum said it remains bullish on Boohoo's prospects, but on a price-to-earnings ratio of 72x February 2017 after a surge in the share price, the stock should pause for breath.The brokerage said Boohoo offers a significant early stage growth opportunity. "Capex of more than £100m over the next five years will lay a platform to grow sales to over £1bn versus £195m in FY16 and this will all be funded from internally generated cash. It sells only its own brand, which supports high margins."Liberum has a 120p price target on the stock.