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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Business & education services

Ashtead tumbles further as profit warning sees flurry of analyst cuts

Ashtead Group PLC (LSE:AHT) faced a sharp drop for a second day running on Wednesday as analysts trimmed estimates in the wake of Tuesday’s cut to full-year guidance.

Though the industrial equipment rental firm detailed plans to shift its primary listing from London to the US, the news was overshadowed by a separate profit warning contained in the interims.

RBC, JPMorgan and Goldman Sachs were among a string of banks to wind down Ashtead’s share price targets as a result.

RBC cut from 7450p to 6,750p, noting Ashtead’s performance against peers had “been called into question in the near term”.

JPMorgan lowered its target from 7,300p to 6,900p and Goldman cut to 6,600p.

“[We] still think the stock can 'work' on a 12-month view,” RBC added, highlighting the subsequent launch of a US$1.5 billion (£1.2 billion) buyback from Ashtead.

However, Ashtead fell a further 6.5% to 5,044p after having slumped by 14% on Tuesday.

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