AGK.L Share News (AGK)

(ShareCast News) - RBC Capital Markets slashed its price target on Aggreko to 850p from 1,050p following the temporary power provider's third-quarter trading update on Wednesday, keeping its rating at 'sector perform'.The bank said it was downgrading its 2017 forecasts to reflect a weaker Argentina outcome and a tough North American oil and gas segment."Whilst we believe management is doing the right things, overcapacity remains an issue and we see limited scope for a rerating until the group can get back on the growth track."RBC said it appears headwinds into next year are greater than expected, with management's expectation for the Argentina contract outcome worse than forecast and North America oil and gas weaker as regards gas volumes and pricing pressure."More generally, there is some uncertainty remaining around rebids and with over capacity still an issue, risks remain. There may be more opportunity from procurement savings to help offset but in reality, we think they will be tough to hang on to in the current environment."The bank now expects 2017 profits to be broadly flat compared to 2016, with forex, cost savings and better utilisation in Power Projects offset by Argentina and North America.Still, on the plus side, it noted management expects full-year pre-tax profit of £225m, broadly in line with estimates, while the bad debt situation is no worse than it was in the first half.In addition, it pointed out that there has been a good level of order intake.At 1550 GMT, Aggreko shares were down 3.4% to 775p.