Aggreko (AGK)

Sector:

Support

Index:

FTSE 250

773.20p
   
  • Change Today:
    -4.60p
  • 52 Week High: 869.20p
  • 52 Week Low: 707.20p
  • Currency: UK Pounds
  • Volume: 374,567
  • RiskGrade: 90

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

By Sean Farrell

Date: Tuesday 21 Aug 2018

LONDON (ShareCast) - (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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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Aggreko Market Data

Currency UK Pounds
Share Price 773.20p
Change Today -4.60p
% Change -0.59 %
52 Week High 869.20p
52 Week Low 707.20p
Volume 374,567
RiskGrade 90

Aggreko Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
20.84% above the market average20.84% above the market average20.84% above the market average20.84% above the market average20.84% above the market average
8.77% above the sector average8.77% above the sector average8.77% above the sector average8.77% above the sector average8.77% above the sector average
Price Trend
8.03% above the market average8.03% above the market average8.03% above the market average8.03% above the market average8.03% above the market average
19.67% below the sector average19.67% below the sector average19.67% below the sector average19.67% below the sector average19.67% below the sector average
Income
38.17% above the market average38.17% above the market average38.17% above the market average38.17% above the market average38.17% above the market average
29.27% above the sector average29.27% above the sector average29.27% above the sector average29.27% above the sector average29.27% above the sector average
Growth
66.12% below the market average66.12% below the market average66.12% below the market average66.12% below the market average66.12% below the market average
78.57% below the sector average78.57% below the sector average78.57% below the sector average78.57% below the sector average78.57% below the sector average

What The Brokers Say

Strong Buy 4
Buy 1
Neutral 2
Sell 1
Strong Sell 5
Total 13
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Aggreko Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 18-Apr-19
Paid 01-Oct-19 24-May-19
Amount 9.38p 17.74p

Trades for 21-Feb-2020

Time Volume / Share Price
16:50 6 @ 773.40p
16:50 314 @ 773.40p
16:35 230,831 @ 773.20p
16:29 12 @ 770.00p
16:29 9 @ 770.20p

Aggreko Key Personnel

CEO Chris Weston
CFO Heath Drewett

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