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HSBC says Aggreko woes are cyclical as it upgrades to 'buy'

Tue, 21st Aug 2018 12:06

(Sharecast News) - Most of Aggreko's problems are cyclical rather than strategic, HSBC said as it upgraded the generator hire company to 'buy'. Many investors think Aggreko's troubles are caused by structural issues such as changing technology, new competition and overcapacity. But a resources sector slowdown has aggravated a decline in demand for temporary power since 2014, HSBC said."We think that much of Aggreko's woes are of a cyclical nature, rather than structural," the analysts said. "The supply chain is supportive of expecting such a recovery, bar the risks from a trade war led disruption."The under-use of Aggreko's assets is also an opportunity because its equipment often lasts longer than the accounts assume, HSBC said."Under such a backdrop, the cost savings plan and improving resources sector demand make the revised strategic target of mid-teen ROIC (earlier 20% target, set in 2015) feasible," the analysts said.Upgrading to 'buy' from 'hold' and raising their target price to £10.50 from 740p the HSBC analysts said: "If Aggreko moves from its current unloved status to the 'new management turnaround of a fallen angel' story, we expect the upside to be attractive."Key risks to HSBC's assumptions are trade wars that could hamper growth and receivables collection and contract churn driven by underinvestment.Aggreko shares stood at 829p when HSBC made its upgrade. At 12:42 BST the shares were up 4.5% at 879.80p.
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21 Aug 2018 11:55

LONDON MARKET MIDDAY: FTSE 100 Lags European Peers As BHP Weighs

LONDON (Alliance News) - Stocks in London were mixed at midday on Tuesday, with BHP Billiton weighing on the FTSE 100 as its interim results disappointed.However, boosting the FTSE a

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21 Aug 2018 10:44

WINNERS & LOSERS SUMMARY: Persimmon Leads Housebuilders Higher

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - up 1.3%. The housebuilder said it continued to

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21 Aug 2018 08:47

LONDON MARKET OPEN: FTSE 100 Gains Restricted By BHP Billiton

LONDON (Alliance News) - Stocks in London opened mixed on Tuesday with gains from housebuilders offset by a drop from BHP Billiton in the FTSE 100. The FTSE 100 index was down 0.1%,

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1 Aug 2018 17:35

European Markets Finish Mixed As Trade Concerns Resurface

BRUSSELS/FRANKFURT/PARIS (Alliance News) - The European markets ended Wednesday's session with mixed results. Trade concerns had a negative impact on investor sentiment, following that

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1 Aug 2018 17:21

LONDON MARKET CLOSE: Next And Mining Stocks Send FTSE 100 Lower

LONDON (Alliance News) - Stocks in London ended sharply lower on Wednesday with Next and miners weighing on the FTSE 100, as the US ramped up its trade spat with China. The FTSE 100 index closed or a

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1 Aug 2018 12:11

LONDON MARKET MIDDAY: Losses Accelerate As US-China Tariff Talk Weighs

LONDON (Alliance News) - Stocks in London were trading sharply lower midday Wednesday over talks of further US tariffs on China and a host of host of ill-received corporate updates.Meanwhile, pound a

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1 Aug 2018 08:54

Aggreko confident of hitting FY guidance after solid underlying first half

(Sharecast News) - Temporary power supplier Aggreko said first half pre-tax profits fell 7% to £59m, with revenues up 10% to £857m.

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25 Jul 2018 16:02

UK Earnings, Trading Statements Calendar - Next 7 Days

Thursday 26 July Royal Dutch ShellHalf Year ResultsSchrodersHalf Year Year Year Joinery 1

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11 Jun 2018 17:15

LONDON MARKET CLOSE: FTSE Higher As Markets Brace For Historic Summit

LONDON (Alliance News) - Stocks in London ended higher on Monday casting aside an acrimonious G7 summit, as investor focus turns to US President Donald Trump as he prepares to hold a historic meeting

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11 Jun 2018 11:03

WINNERS & LOSERS SUMMARY: Evraz Stands Tall With Fitch Rating Upgrade

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.----------FTSE 100 - up 6.5%. Fitch Ratings upgraded the Russian to a

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19 Apr 2018 16:10

UK Shareholder Meetings Calendar - Next 7 Days

Friday 20 AprilHSBC HoldingsBank of Ireland GroupMonday 23 & Colonial Investment 24 Stock

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6 Mar 2018 10:38

WINNERS & LOSERS SUMMARY: Investors Lose Appetite For Just Eat

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.----------FTSE 100 - WINNERS----------Smurfit up it

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6 Mar 2018 09:25

Aggreko Revenue Up But Profit Down On Argentinian Legacy Contracts

LONDON (Alliance News) - Aggreko PLC on Tuesday said that the repricing and off-hire of its utility contracts in Argentina "masks" the in across

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30 Jan 2017 08:56

Aggreko shares fall on Deutsche Bank downgrade

(ShareCast News) - Aggreko's shares fell on Monday after Deutsche Bank cut its recommendation on the stock to 'hold' from 'buy' and lowered the target price to 1,000p from 1,050p. The supplier of temporary power generation equipment is expected to see trading profit return to growth in 2018 after a

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16 Jan 2017 07:45

Aggreko Extends Argentina Contracts Up To March With Pricing In Line

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