Berenberg Bank Recommends Buy for Ashtead Group with Upside

A recent report highlights Berenberg Bank's Buy recommendation for Ashtead Group plc - Depositary Receipt, forecasting a potential upside of 15.19%. Despite a projected revenue decrease, institutional positions show an increase in shares owned, reflecting a positive sentiment among investors.

Date: 22-09-2024

AI Rating: 6

The report indicates that Berenberg Bank has initiated coverage of Ashtead Group plc - Depositary Receipt with a Buy recommendation. Analysts forecast a potential upside of 15.19%, with an average one-year price target set at $336.82/share. This figure is based on a range between $259.29 as the low and $406.02 as the high target, which suggests strong investor expectations for share performance.

However, the projected annual revenue for Ashtead Group is $10,435 million, indicating a decrease of 4.41%. This decline may raise concerns regarding future sales performance, even while the EPS is reported at $4.19.

In terms of institutional sentiment, 16 funds or institutions have reported positions in Ashtead Group, with a 11.11% decrease in owners last quarter. Nevertheless, the total shares owned by institutions have increased by 6.36%, totaling 836K shares, signaling a growing confidence among existing investors despite fewer total stakeholders. The average portfolio weight is noted to increase by 4.33%.

Additionally, specific funds exhibit varying changes in shareholdings: Aristotle Capital Management increased its position slightly, while Central Securities notably increased their holdings by 47.06%. These changes collectively indicate a mixed yet cautiously optimistic outlook among institutional investors.

In summary, Berenberg Bank's Buy recommendation amid slightly declining revenues reflects a potential growth opportunity for investors willing to evaluate the balance between the forecasted price upside and the revenue forecasts.

Stocks: ASHTY