RBC Capital upgrades Ashtead to ‘outperform’

RBC Capital Markets upgraded Ashtead on Wednesday to ‘outperform’ from ‘sector perform’, saying it sees the equipment rental company as a structural long-term beneficiary in the fragmented North American market, with optionality around international expansion.

"Management is best in class and we see the revenue mix as ever more resilient, bolstered by rapidly-growing, under-penetrated specialty solutions and the execution on of the vast IIJA (Infrastructure Investment and Jobs Act) stimulus in the US in coming years," it said.

RBC said that although equity market volatility looks set to remain elevated, now is a good time to start accumulating Ashtead shares, "perhaps recognising that our timing may be imperfect".

The bank cut its price target on the stock to 4,625p from 4,950p.