Ashtead Technology Holdings PLC (AIM:AT.) has received the backing of analysts at Liberum Capital following the £20mln acquisition of Hiretech Limited which they said was a further boost to the company’s Mechanical Solutions service offering.
“We believe the acquisition further supports the company’s growth strategy,” the analysts said.
As a result, the analysts raised earnings forecasts for the Aberdeenshire-based equipment rental, service and maintenance company, lifted their price target to 386p from 339p, and reiterated a 'buy' rating on the stock.
“The deal suggests that Ashtead’s acquisition strategy remains broadly unchanged from its last six, acquiring Hiretech on 4.9x EV/EBITDA, whilst also pointing to immediate synergistic upside” the Liberum analysts noted.
“Crucially, the purchase of Hiretech will also serve to increase Ashtead’s blue-chip customer base, adding additional large vendors," they concluded.