A BROKER has downgraded shares in temporary power supplier Aggreko citing "lacklustre trading" in one of its key divisions.
However Caroline de La Soujeole, from Cantor Fitzgerald, said the Glasgow company's remains the "preferred play" in the power rental sector.
She has concerns over the strategy of APR Energy, Aggreko's main rival, moving to semi-permanent power instead of temporary and remains to be convinced over the "merits of a turbine led business model".
But Ms de La Soujeole did downgrade Aggreko from buy to hold suggesting trading in its power projects arm, which focuses on long-term schemes, was still problematic.
She said: "The conversion rates in Power Projects have remained at all-time lows for longer than we were anticipating. We believe the shares are likely to trade sideways until we see firm evidence that the tide is finally turning."
Separately Aggreko non-executive director Ian Marchant, formerly chief executive at SSE, bought more than £55,000 of shares.
Mr Marchant purchased 3500 shares at 1588p.
At the end of last month Aggreko unveiled a solid trading statement suggesting it was on course to meet City expectations.
The consensus is Aggreko will report around £330 million of profit before tax and amortisation across 2013, below the £365m for last year although that was boosted by the contract for the London Olympics.
Chief executive Rupert Soames said recently the group is bidding for contracts to power the football world cup in Brazil and the Glasgow Commonwealth Games in 2014.
Shares in Aggreko closed down 33p, or 2%, at 1551p.
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