The bank’s analysts also cut their target price for the FTSE 250-listed temporary power provider to 760p from 830p, with the shares trading at 779.60p in late morning trading.
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In a note to clients, Barclays analysts said the investment case for Aggreko and achievement of management's targets depends on “a manageable decline in the Utility business with the Rental and Industrial segments able to compensate.”
They added: “Despite a relatively reassuring third-quarter trading update, we feel the ongoing weakness in the Utility business and more general concerns of slower global economic growth could make it harder to progress as expected in 2019 and 2020.”
The analysts continued: “As the valuation has recovered from what we considered excessively depressed levels earlier in the year we now believe it fairly reflects the opportunities and risks.”
They said they only made small changes to profit forecasts for Aggreko, but a tax-induced reduction to their earnings per share estimates and the recent de-rating of the peer group leads it to cut its target and therefore downgrade its rating.