In news on UK stocks, Ashtead Group PLC (GB:AHT) fell over 4% after the company projected a weak outlook for the full year in its third-quarter results for FY24. The company anticipates its full-year rental revenue growth at the lower end of its 11% to 13% outlook range. The company also reduced its revenue growth outlook range for Canada to 11% to 13% from the previous guidance of 14% to 16%.
Ashtead Group provides rental services for a wide range of construction and industrial equipment, catering to various sectors.
Snapshot of Third Quarter Numbers
In Q3, Ashtead’s revenue grew by 9% to $2.7 million, while rental revenue increased by 7%. The company reported an 11% decline in its adjusted pre-tax profits of $473 million due to higher depreciation and increased financing costs.
During Q3, Ashtead experienced reduced levels of emergency response activity linked to natural disasters in the U.S. The performance was also impacted by prolonged actors’ and writers’ strikes. In the long term, the company remains optimistic about the prospects of this region, citing the increasing number of projects in the construction industry and recent legislative actions as key drivers of growth. In the nine months of FY24, the company added 106 locations in North America.
What is the Target Price for Ashtead?
On TipRanks, AHT stock has received a Moderate Buy consensus rating based on four Buy and three Hold recommendations. The Ashtead share price target is 5,808.33p, which is 7.3% higher than the current trading levels.
