The gap at 550ish getting close to being closed |
An under-rated company offering robust earnings growth
Simon Thompson: It is raising earnings guidance and expects to deliver 28 per cent earnings growth |
 The below is from Citywire’s daily roundup of analyst and fund manager commentary on shares:-
Peel Hunt: Ashtead Tech proving it can deliver
A full-year update from Ashtead Technology (AT) is further proof of management’s ability to deliver strategic and financial progress, says Peel Hunt.
Analyst Andrew Nussey retained his ‘buy’ recommendation and target price of 850p on the subsea equipment rental group. The stock was trading up 12% at 623p at time of writing on Thursday after a 2024 update showed it was trading ahead of consensus and Peel Hunt’s estimates for both profit and cash.
‘Full-year 2024 momentum, ongoing market demand, and record customer backlogs provide confidence that growth will continue through 2025,’ said Nussey.
He said the statement from the company, which provides equipment and services to the energy industry, is ‘yet another proof point of management’s continuing ability to deliver strong strategic, operational and financial progress’.
The analyst added: ‘In our view, the shares offer compelling value and remain a conviction “buy”.’ |
I would imagine a few short positions were being covered today. The trading update was a definite shot in the arm and so was bring another non exec on board with plenty of industry experience. |
A perfect example of focusing on the business and not the price. Mr. Market definitely had a couple mood swings these last few months. Just looking at business performance you'd have been shocked at the price volatility. Never fails to baffle me. Hey ho, that's where opportunities lie. |
The director buy end of November suggested no troubles were ahead.
Looks like a class act.
Well done to everyone at Ashtead Technology :-)) |
Positive, not sure 'very', but we'll see. |
Very positive, I like it. |
Unaudited full-year revenues for 2024 are projected to be around £168m with full year adjusted EBITA expected to be ahead of consensus. |
Seems to be be trading in a band between around 500p and 580p for the last few months. Recent rise in oil price should be positive for them. Probably not helped by severe lack of news, with no trading update since HY results in September. |
Well it’s still going down. |
Stick my neck out and say he wouldn't have spent £71,500 if there was a profit warning coming. |
Yes indeed. He bought 13K at 550p taking his holding to 65K. |
Director buy £71,500 |
Interview here Paul Hill with Abby Glennie from ABRDN, AT. covered at 25.40 |
Puzzled – and rather wrong-footed – by post-interims weakness.
Calendar 2025 estimates have been increased by c. 5% (from 43.2p to 45.5p) following news of the acquisition of Seatronics.
But AT.'s guidance was that the acquisition of Seatronics would be “mid-to-high single digit earnings enhancing in the first full year of ownership” and so a 5% increase in estimates for 2025 (at the bottom of this range) could be seen as caution, or perhaps a modest, disguised warning? |
Entered here after having interest sparked by playing ftse. Seems like a good energy security play. Also, interested if there's any scope to benefit from subsea cables being cut... |
Ian summarised well. Good team tough time for sector. They could do with a TU in Dec/jan. |
Paul Hill and FM Iain Staples discuss AT. from 25.55 |
I am a new investor in AT. and will bow to others superior knowledge but I thought the company sounded pretty upbeat, in the September results, regarding the offshore side of the business.
Take, for example, the answer to the first question in the Q&A.
“As I said, the UK is a market leader in offshore wind. We are encouraged by the government's approach to the offshore wind market. They've increased the target on 2030 from 50 gigawatts to 55 gigawatts. What we would say there, is that the Rystad data that we're showing in these slides is based on 43 gigawatts. So you know, one of the challenges there is, how does the industry react to be able to put that level of infrastructure in play by the end of the decade, but we clearly see that as a growth opportunity for this business and very, very welcome to it”.
Slide No.13 is maybe worth a look at.
Agree the share price is frustrating, I’m already sitting on a sizeable loss (nearly 17%) and I’ve only been invested since the 24th October. My broker bought them, and for what it’s worth, he is bullish about their prospects. |
>>Low oil prices = less offshore development due to CAPEX requirements being higher.>>
According to a 3/11/22 Simon Thompson article "In the mature oil and gas sector, the focus is on IMR and decommissioning".
If correct, wouldn't this mean that AT. would/could benefit from a weak O&G investment environment? |
The market is pricing in the impact of what looks likely to be a sustained period of low global oil prices (Trump's 'drill baby drill' being the final nail in coffin).
Low oil prices = less offshore development due to CAPEX requirements being higher.
That means less work for AT.
Yes, they are somewhat diversified via renewables & decommissioning, but considering the market has been buoyant over the last few years, I think they will struggle to meet / beat expectations.
They also have major debt obligations now & the higher for longer rate environment won't help their EPS ambitions.
All IMO. |
What is going on with the share price on a continuous decline. The only thing I can think of is the Labour government opening up On-Shore wind development. |
Gap @ £5.09 on the chart for those that follow TA. |
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