Ashtead Group PLC (LON:AHT) shares fell on Wednesday after they were downgraded by RBC Capital Markets due to uncertainty over the US economic outlook.
While the construction equipment hire group “is an excellent business and is well positioned to take share into a recovery”, the analysts said “the size and shape of a recovery is uncertain”.
The last update from the company was in late April, when it said it has slashed its cash spending but the level of US fleet on rent had stabilised in the preceding weeks. A year-end update is due June 16.
With the stock, as of the previous close of 2,550p, up around 6% since the start of the year, the analysts downgraded to ‘sector perform’ from ‘outperform’ but upped their price target was lifted to 2,600p from 2,200p.
The shares fell over 3% to 2,466.58p on Wednesday morning.