UBS has downgraded temporary power firm Aggreko Plc (LON:AGK) to ‘sell’ from ‘neutral’.
Weak markets have undoubtedly been a headwind for Aggreko for the past 3 years, but we now believe that Aggreko's problems are structural too, says the broker.
Pricing should therefore come under increasing pressure and this will eat through cost savings.
"A new product line is likely necessary to reinvent Aggreko, but we wouldn't expect to see a material benefit until 2020."
Elsewhere, asset manager Schroders Plc (LON:SDR) was upgraded to ‘buy’ from ‘hold’ by Jefferies International.
And at the same time Jefferies downgraded investment manager Ashmore group (LON:ASHM) to ‘hold’ from ‘buy’.
Direct Line Insurance Group Plc (LON:DLG) was cut to ‘equal weight’ from ‘overweight’ by Barclays Capital which set a new price target of 369p from 443p.
JP Morgan Cazenove has downgraded Phoenix Group Holdings (LON:PHNX) to ‘neutral’ from ‘overweight’.
Atlantis Resources Ltd (LON:ARL) new partners for tidal power projects offshore Scotland bring both credibility and cash to the venture, says Peel Hunt.
The City broker has a ‘buy’ recommendation for the renewable energy share, and with an upgraded 140p per share target sees some 135% upside to the current share price of 59p.
Analyst Andrew Shepherd-Barron in a note said: “In the space of a week, Atlantis has signed up two new partners, DEME and Equitix, who together bring valuable supply chain, project development and financing skills, as well as £2m of cash.
“They enhance Atlantis’s credibility with the UK and Scottish Governments, as well as other potential supply chain partners and financiers, and further cement its position as the leader in this emerging industry.”