Ashtead Group PLC (LSE:AHT) shares have risen strongly since its last update in September with the prospect of a bumper construction spending spree by new US President Donald Trump adding to the momentum.
Next week’s second-quarter update will not have any benefit from that, but the US-focused plant hire group maintaining its full-year guidance in September has eased many of the concerns that surfaced mid-year.
Jefferies expects "broadly stable US rental growth” in the second quarter of about 6%, reflecting a continued mixed underlying US construction market and easing rates paired against end-of-quarter Hurricane activity and easing previous year comparisons,
“While solid drop-through should be maintained, a full-year capex guidance cut we would see as prudent,” adds the bank.
Ashtead earns 90% of its revenues in the US and the question of whether that is where it should be listed is bound to come up again, especially with new CFO, Alex Pease, based in South Carolina.