June 17 (Bloomberg) -- APR Energy Plc, a supplier of temporary power generators, advanced to a 13-month high in London trading after saying it extended a contract in Libya.
APR rose 8.3 percent to close at 910 pence, the highest level since May 17, 2012. The London-based company will provide 200 megawatts to Libya on top of a current contract for 250 megawatts, it said today in a statement. The deal brings new contracts this year to 553 megawatts, compared with 569 megawatts for all of 2012.
“The increased business will underpin our forecasts for 2014 and remove some of the earnings risk perceived by the market,” Numis Securities Ltd. said in a note.
Five analysts including Numis recommend buying the stock, six say to sell and two have a hold recommendation.
Cantor Fitzgerald LP affirmed its sell rating today, saying the stock was at a “demanding” price relative to its earnings outlook, which relies in large part on two short-term contracts.
“Whilst today’s announcement is a positive development and is likely to mean that fiscal year 2014 consensus expectations are a bit light, we note that this means that two contracts now account for a significant portion of the group’s contract base with both contracts set to go off hire in 2014,” Cantor said.
To contact the reporter on this story: Nidaa Bakhsh in London at firstname.lastname@example.org
To contact the editor responsible for this story: Will Kennedy at email@example.com