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9 December 2015
Shares in equipment rental group Ashtead (AHT) are up 7% again after latest results, testing the upper boundary of a 4M rising wedge after bouncing strongly from the floor to tease us with a potential breakout. Investors are pleased as punch with a Q2 results statement that allows management to raise both the FY guidance and dividend thanks to strong end-markets and good performance in both divisions. With another 25% jump in Q2 profits (+20-25% in Q1), despite still significant investment into geographical and sectoral diversification, this keeps the company’s shares in a bullish uptrend from August lows of 850p. And with profits growing faster than sales, implying welcome margin expansion versus Q1, this bodes well for Q3 results in March and the final look at FY guidance.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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