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Aggreko downgrade but optimism remains

A BROKER has downgraded Aggreko from buy to hold in spite of believing prospects for the temporary power supplier remain strong.

Analysts Paul Jones and Mike Allen, both of Panmure Gordon, said in a research note they were leaving their financial forecasts on Aggreko unchanged following a recent visit to a number of its sites in the Americas.

They said: "This is a business with an experienced management team growing operations at more than twice GDP in each geography in which it operates,

"It is set up to drive future growth over the medium to long term over a wide range of applications and service requirements.

"In particular, a focus on efficiencies, safety and customer service all look positive for future growth prospects." Recent management changes at the Glasgow-based will see Centrica executive Chris Weston heading up the business while long-serving Angus Cockburn follows former boss Rupert Soames out the door.

The Panmure analysts said those moves are not expected to lead to any major change in strategy over the medium term.

They added: "[We] believe prospects to drive exposure to existing industries much deeper remain very good."

Aggreko's shares ended the day down 8p, or 0.47 per cent, at 1679p.

Aggreko will be providing temporary power and cooling solutions at high profile sporting events such as the football World Cup in Brazil, the Commonwealth Games in Glasgow and the Ryder Cup at Gleneagles over the next few months.

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