Stifel has revised its 12-month price target on Ashtead Technology Holdings PLC (AIM:AT.) to 660p, down from 900p, while reiterating a 'buy' rating on the shares.
The broker says that, despite the cut, the medium-term outlook remains attractive for investors looking to tap into market cyclicity.
“We continue to like the name on a medium-term outlook,” Stifel notes, “But adjust our price target to 660p (from 900p)” to reflect a greater discount factor in risk-off energy markets.
The analysts emphasise that Ashtead has delivered on its strategic plan and kept market expectations grounded: “the key challenge for the group is to maintain consistent execution,” they write, and “in our view, both have been achieved.”
Stifel’s latest move underlines the pendulum swing in end-market demand for rental tools and technology. With execution on track and valuation having reset, they believe the current share price offers an attractive entry point for patients prepared to ride the cycle.
The shares were 1.5% higher at 428.5p.