Aggreko climbs on Credit Suisse upgrade to ‘outperform’

The upgrade was underpinned by a US$200mln supply contract awarded by the Tokyo 2020 Olympic games

Aggreko - Credit Suisse upgrades Aggreko to ‘outperform’
The investment bank also upped the price target to 905p to 750p

Aggreko PLC (LON:AGK) was upgraded to ‘outperform’ from ‘neutral’ by Credit Suisse, on the back of the FTSE 250-listed company’s profitability goals underpinned by a major contract at Tokyo 2020.

The investment bank also upped the price target to 905p to 750p in its note on Tuesday, also citing benefits from the Olympics supply contract, valued at US$200mln.

The Glasgow-based group, which supplies equipment for temporary power generation and temperature control, previously said it will deliver mid-teens return on capital employed (ROCE) next year.

Credit Suisse based the re-rating on the cost-reduction programme set by management as well as a number of initiatives aimed at improving all levels of ROCE, which is forecast to rise from 10.3% in 2018 to 15.9% in 2023.

Shares were up 1% to 812.8p on Tuesday at noon.

Quick facts: Aggreko

Price: 813.4 GBX

Market: LSE
Market Cap: £2.08 billion

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