Ashtead Group: Near-Term Performance Is Uncertain, But Upside Remains Attractive

Jay Capital profile picture
Jay Capital
1.18K Followers
(7min)

Summary

  • I maintain a buy rating for Ashtead Group, confident in its long-term growth potential despite near-term uncertainties and recent earnings misses.
  • AHT's FY29 adj EBITDA guidance remains achievable, driven by strong demand for mega projects and positive forward-looking indicators like the Dodge momentum index.
  • Near-term risks include elevated interest rates impacting local construction demand and potential policy changes from Trump.

A Sunbelt Rentals aerial lift against a clear blue sky. The green and white lift platform is raised high, indicating it"s ready for use in construction.

Marvin Samuel Tolentino Pineda

Summary

Following my coverage on Ashtead Group (OTCPK:ASHTF) (aka AHT) in Sep’24, which I recommended a buy rating due to my expectation that the business will continue to see growth recovery when the macro environment

This article was written by

Jay Capital profile picture
1.18K Followers
I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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