Shares in the company nevertheless slipped 53p or 2.6% to 1969p, amid general stock market weakness yesterday.
Goldman Sachs reiterated its “conviction buy” recommendation on Glasgow-based Aggreko as it increased its target price on the stock.
It said the target price increase reflected its view that the “strength of structural demand for temporary power should enable Aggreko to continue to deliver top-quartile earnings growth and cash returns”.
Goldman Sachs forecast that Aggreko would, when it published results for the first half of its financial year on August 25, report group revenues of £630 million and trading profit of £133m.
The investment bank added that potential catalysts included new contract wins in Aggreko’s international power projects division, and an acceleration in the key summer months in the company’s various “local” businesses around the world.
Goldman said the key risks to its view of, and price target for, Aggreko were further competition in the international power projects business, geopolitical risk, higher fleet mobilisation costs, earlier-than-expected termination of military contracts, and US dollar weakness.
Shares in Aggreko have risen sharply in recent times, climbing from about 350p in the depths of the recession in March 2009.
Aggreko, which is headed by Rupert Soames, has enjoyed rapid growth in its global business and powered a raft of high-profile events including the football World Cup in South Africa last year.
The company, which was promoted to the UK’s FTSE-100 index of leading shares in December 2009, noted last month that it had delivered respective total shareholder returns of 202% and 617% over three and five years.
In March, Aggreko reported a 24.6% rise in underlying pre-tax profits to £307.1m in 2010.
Mr Soames reaped further rewards with an award of £4.4m of shares under a long-term incentive plan last month. He cashed in about £4.2m by selling 231,812 of the 243,500 of the shares he received at 1823p each.
Aggreko Stock Prices prediction july 2011, Goldman Sachs predicted Aggreko Share prices, UK’s FTSE-100 stock prices forecast.
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