JPMorgan Cazenove remains upbeat on Ashtead (LON:AHT), pointing to a ‘rare’ opportunity for the company to continue growing its market share on the other side of the Atlantic. The comments came as the analysts hiked their price target on the stock.
Ashtead’s share price has been steady in London in today’s session, having inched 0.20 percent higher to 2,019.00p as of 14:42 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.28 percent higher at 7,702.75 points. The group’s shares have added more than 26 percent to their value over the past year, as compared with more than a seven-percent rise in the Footsie.
JPMorgan upbeat on Ashtead
JPMorgan Cazenove reiterated its ‘overweight’ rating on Ashtead today, lifting its price target on the shares from 2,400p to 2,500p. WebFG News quoted the broker as highlighting the ‘rare’ opportunity for the company, which was already a market leader in the US, to continue growing its market share in that North American market.
The analysts noted that while the group’s share price gains in the wake of its second-quarter results had been offset by news that several members of its senior management team had decided to sell their shares, as the dust had settled, they had decided to revisit their investment thesis and model and their conviction was unchanged.
JPMorgan further noted that Ashtead remained a ‘top pick,’ arguing that the company’s potential for growth and cash flow dynamics were undervalued.
Other analysts on Ashtead
The 16 analysts offering 12-month price targets for Ashtead for the Financial Times have a median target of 2,200.00p on the shares, with a high estimate of 2,500.00p and a low estimate of 1,375.00p. As of January 6, the consensus forecast amongst 17 polled investment analysts covering the blue-chip group has it that the company will outperform the market.