Best of the Brokers for 23 September 2015
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UBS cut its target price for generator hire company Aggreko from 1,675p to 1,050p, but maintained their “hold” rating. Forecasting a 14 per cent year-on-year decline in profits, analysts blamed the renewal of a large Bangladesh contract at lower terms and challenges with running in Yemen for the expected fall in profitability. The long term outlook is uncertain, but UBS argues that that Aggreko should adapt to their changing markets by developing new technology and products.
Despite weak demand from China hitting the diamond market, analysts at Panmure Gordon have upgraded Petra Diamonds from a “hold” to a “buy” rating. The broker believes the current weakness in Petra’s share price is unjustified and have kept their target price unchanged at 144p. Appealing to strong long term fundamentals in the diamond market and solid production growth, Panmure Gordon reiterated “buy”. rating.
Canaccord Genuity have given Eckoh a “buy” rating with a target price of 53p. The UK is a core market for the secure payments firm, responsible for 95 per cent of revenue in 2015. But a recent five year exclusivity deal with West Corporation represents a substantial opportunity for growth in the US. Analysts at Canaccord Genuity said that if Eckoh fully capitalises on the deal then US revenues have the potential to exceed 2015 UK revenues within three years.