Ashtead Group’s upward momentum continues

Ashtead Group, an industrial equipment rental company, reported that 2Q underlying EPS fell 6% on year to 54.3p.

Charts (6)

Ashtead Group, an industrial equipment rental company, reported that 2Q underlying EPS fell 6% on year to 54.3p and underlying EBITDA slipped 1% to 663 million pounds on rental revenue of 1.22 billion pounds, down 5% (-1% at constant exchange rates). The company proposed an interim dividend of 7.15p per share, unchanged from the prior-year period. Regarding the outlook, the company has raised its full-year rental revenue guidance to "-4% to -7%" from "-5% to -9%" previously.

From a chartist’s point of view, the stock price remains in a bullish trend, supported by the rising 20WMA currently at 2875p and by an ascending trend line (former resistance which will play a support role). The weekly RSI (14) is bullish and not overbought. Readers may want to consider the potential for opening Long positions above the horizontal support at 2784p with 3489p and 3840p as targets (Fibonacci projection levels). Only a break below 2784p would negate the bullish view and would call for a reversal down trend towards 2032p.

Source: TradingView, Gain Capital


More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.