STOCKS NEWS EUROPE-Aggreko advances; Numis upgrades

Shares in Aggreko (AGGK.L) add 3.8 percent as Numis Securities ups its rating for the temporary power supplier to "buy" from "add" with an unchanged 630 pence price target ahead of an Interim Management Statement due on Tuesday.

The broker points out, in a note, that Aggreko shares fell 9 percent last week ahead of the trading update.

Numis says it believes Aggreko's management will maintain guidance for the current year which should re-assure investors about the sustainability of the business model.

The broker notes that Aggreko's pre-tax return on invested capital (ROIC) of 29 percent is more than double the circa 12 percent ROIC earned by the general plant hire groups.

Numis says it thinks it is difficult to see why Aggreko should trade on an enterprise value//EBITDA ratio of 4.2 times when peer Ashtead Group (AHT.L) trades on 4.3 times.

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net