7) Ashtead Group (AHT)
This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Day-to-day, Ashtead Group shares have been trying hard to establish themselves in a 2-month rising channel. However, the 50-day moving average is proving a tough hurdle. Again, we’re seeing a reduction in volume and overbought technicals. Longer term (as shown on the above chart), things look a little more bullish with a 5-year rising trend line teasing shares away from support at £7.50. With Ashtead about 80% exposed to the US construction market, Ashtead represents a convenient platform on which to bet on developments in the US economy – which looks to be in relatively good health if employment numbers are to be believed.
This is also one stock that might show at least some immunity to Brexit-sponsored fear mongering!
Do you think shares in Ashtead Group will rally up to the highs of 1200p or fall through support below 800p?
A clear bullish bias is evident among the small group of brokers covering this stock. 14 of 17 brokers have either buy (11) or hold (3) ratings. Of those brokers giving price targets, 12 out of 13 are looking for upside with the most bullish seeing a staggering 74% – that’s after shares have already gone up by 295% since 2012 lows! Contrast that with the most bearish broker seeing just 11% downside (while not giving an explicit ‘sell’ rating).
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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