Broker snap: Ashstead weathers the storm

6th Apr 2011 12:07

Panmure Gordon upgrades forecasts at Ashstead Group, saying that the plant hire group has weathered the storm of the low point in the cycle much better than expected.The broker increases its profit and earnings per share forecasts for the year ending April 2012 by 14.1% and 17.9%, respectively, as a result of a combination of increased margin expectations and lower interest assumptions."We believe that prospects for its US operation Sunbelt [US construction and industrial equipment rental division] offer material upside, given both cost reductions and the potential geared effect of additional volume and rates," said the broker.A 'buy' is retained and the target price is upped from 221p to 235p.---bc