STOCKS NEWS EUROPE-Aggreko falls after HSBC cuts rating

Shares in Aggreko shed 1.9 percent, a top faller on a 0.1 percent weaker FTSE 100 , with traders citing a downgrade by HSBC Securities to "neutral" from "overweight", on valuation grounds, as denting sentiment in the temporary power supplier.

"A number of indicators suggest a cooling in Aggreko's cyclical end markets in recent months," HSBC says in a note.

"Both our own and consensus forecasts already imply a cyclical cooling in coming quarters, so numbers remain unchanged at this stage. However, with Aggreko's share price near its peak, we see limited scope for a re-rating from here," the bank says, retaining its 2,350 pence target price on the stock.

Aggreko's share have risen 18 percent in 2012, compared with a 4.8 percent gain by the FTSE 100 index, and hit all time highs in mid-September.

The stock is now close to overbought territory according to its 14-day relative strength index.

Aggreko's earnings quality score -- a measure of the sustainability of furture earnings based on previous results -- decreased to 7 from 16 out of 100 after its June 2012 filing, that compares unfavourably with the industry median of 64, according to Thomson Reuters Starmine data.

Meanwhile, Aggreko's market implied 5-year compound annual growth rate is 13.8 percent and its estimated forward 12-month earnings per share is 11.1 percent, suggesting there is litte room for the company to disappoint investors.

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