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Glance-STOCKS NEWS EUROPE-Ashtead falls ahead of results
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10:21GMT 03Dec2008-Ashtead falls ahead of results; Singer cuts price target
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Shares in equipment hire company Ashtead Group (LSE: AHT.L - news) fall 11.3 percent
ahead of its second-quarter results on December 9, with Singer Capital Markets
cutting its price target to 100 pence, from 113 pence.
In a note, Singer says that while Ashtead's results are expected to outline a
deterioration in current trading conditions, it believes the impact of foreign
exchange on headline debt represents the largest risk to near-term share price
sentiment.
Despite this, it believes the recovery play element to the equity story
remains intact. Ashtead is a dollar earner, interest rate beneficiary, and
trades at a discount to its U.S. peers, says Singer. The broker retains its
'buy' rating on Ashtead.
It forecasts revenue of 273 million pounds, EBITA of 56.7 million pounds
with a year-on-year margin contraction of 280 basis point.
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