Open an account Help & support Register Account summary Log out
Skip Header
Home Stock market news

Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

RBC Capital Markets keeps Ashtead at 'outperform'

Thu 16 Jul 2026 14:42

(Sharecast News) - RBC Capital Markets said first‑half trading at Ashtead Technology was solid, but slightly softer margins linked to ongoing Middle East and Asia disruptions prompted the broker to trim its estimates. Ashtead expects H126 revenues of £100.2m, broadly in line with the £102m consensus, but activity weakness in the Middle East and APAC pushed adjusted underlying earnings and EBITA margins down to 37.8% and 25.0%, below typical first‑half levels. Capex was weighted to H1, nudging leverage up to 1.4x, though the group still expects to finish FY26 below 1.0x.

Guidance was left unchanged, with management assuming Middle East operations normalise and expecting single‑digit revenue and EBITDA growth for the year.

RBC, which reiterated its 'outperform' rating and 560p price target, trimmed its FY26 numbers to reflect lower contribution from higher‑margin Middle East work.

The Canadian broker said record backlogs among Ashtead's largest oil and gas customers, scheduled for execution through 2026-29, underpin a sustained period of offshore activity.

Low breakeven economics and large offshore resources should support continued project sanctioning, providing a favourable backdrop for pricing and margin improvement, added RBC

Ashtead trades on a 4.8x FY27 enterprice value/EBITDA ratio, with RBC's 560p target based on a 6.0x multiple in line with wider offshore services peers.

Reporting by Iain Gilbert at Sharecast.com

Share this article

Related Sharecast Articles

Tue 18 Aug 2026 09:49
Bernstein upgrades Whitbread to 'market perform', says 5-year plan is 'realistic'
(Sharecast News) - Bernstein upgraded Whitbread on Tuesday to 'market perform' from 'underperform' and lifted the price target to 2,400p from 2,100p as it said the company's new five-year plan was "realistic" and it's time to adopt a "more constructive stance".
Tue 18 Aug 2026 08:47
RHI Magnesita taps Gustavo Franco for CEO
(Sharecast News) - Refractory products and services group RHI Magnesita said on Tuesday that chief executive Stefan Borgas will step down at the end of October and retire from executive roles, with Gustavo Franco appointed to succeed him from 1 November.
Tue 18 Aug 2026 08:44
BHP profits jump as copper becomes main driver for first time
(Sharecast News) - Australian mining giant BHP posted a sharp jump in annual earnings with copper became its main profit earner, overtaking iron ore for the first time.
Tue 18 Aug 2026 08:40
HgCapital Trust to invest around £20m in Nourish
(Sharecast News) - HgCapital Trust said on Tuesday that it was investing around £20m in Nourish, a provider of software for the UK social and community care sector.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Awards

Award 1
Award 2
Award 3

Policies and important information

Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Statutory and Regulatory disclosures | Whistleblowing programme

Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document or Product Summary document which contains important information about the fund.

This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.

© FIL Limited 2026