RBC Capital downgraded Ashtead Technology Holdings PLC (AIM:AT.), the subsea technology solutions provider, to 'sector perform' from 'outperform' and cut its price target to £4.00 from £5.60.
The downgrade follows a profit warning from the company, which cut its full-year guidance after revenue and earnings came in below expectations.
Ashtead Technology said full-year revenue is now expected to come in around 5% below the consensus of £214.2 million, with adjusted earnings before interest, tax and amortisation guided approximately 15% below the £59.2 million analyst mid-point.
The company had previously said in July that meeting market expectations depended on de-escalation in the Middle East and stable project scheduling, conditions it said had not materialised.
First-half results published on 1 September showed revenue of £100.2 million, up 1.1% from £99.1 million a year earlier.
Adjusted earnings before interest, tax and amortisation fell 7.3% to £25.1 million, with the margin narrowing to 25.0% from 27.3%.
Net debt fell to £116.7 million from £131.9 million, with leverage easing to 1.4 times from 1.7 times.
Shares were trading Thursday at 341p, below RBC's new price target of £4.00.