Hmmm25 Aug 2009 19:59
"Temporary power supplier Aggreko continues to perform well but brokers are reluctant to recommend buying the shares after the share price’s recent good run.
Charles Stanley believes the shares are high enough for the moment. ‘After a year of very strong growth in 2008, helped by the contract to provide power for the Olympics, Aggreko will do well to generate further growth this year,’ Charles Stanley analyst Geoff Allum believes.
The shares remain worth holding, however, in Allum’s view, as the company’s international power projects division ‘offers a relatively safe stream of earnings.’
Charles Stanley has a price target of 630p for the stock.
Like Charles Stanley, broker KBC Peel Hunt has a ‘hold’ recommendation for Aggreko shares, though its price target is lower at 600p.
‘We are likely to raise estimates by around 5% to reflect currency,’ said KBC analyst Andrew Nussey. Aggreko earns around 70% of its revenue in dollars."