Berenberg lowers target price on Ashtead Technology

(Sharecast News) - Analysts at Berenberg lowered their target price on Ashtead Technology from 800.0p to 700.0p on Friday following a "tough first half". Ashtead Technology posted its H1 trading update on Thursday, with the firm ultimately guiding for FY25 adjusted underlying earnings that were "modestly below" previous expectations following lower-than-expected revenues.

However, Bernberg noted that shares slumped roughly 23% on the day as investors focussed on the slowing of organic growth, macro challenges ahead for FY26 and technical factors.

"We update our numbers for the release, resulting in no change in EPS for FY25, but with 8-10% cuts for the rest of the forecast period - primarily due to lower revenue and organic growth assumptions," said Berenberg, which reiterated its 'buy' rating on the stock.

"We are, of course, cognisant of the various macro headwinds left to navigate, but would also note that the adjusted EBITDA expected in FY25 is c4x larger than that reported close to the IPO in FY21 - with the business not having raised equity in that period, and the stock is now trading on 4.4x FY26 EBITDA."













Reporting by Iain Gilbert at Sharecast.com