Broker snap: Cantor upbeat about Ashtead on US optimism

11th Mar 2013 11:07

Cantor Fitzgerald reiterated its 'buy' recommendation and 650p target price for construction firm Ashtead after recent forecast-beating jobs data from the US. "Friday's US non-farm payrolls provided further evidence that US construction markets are improving," said analyst Caroline de La Soujeole.The US economy created 236,000 jobs last month, well ahead of the 160,000 expected. The broker pointed out that in construction, jobs were up 48,000 from January to February to 5.784m, up 2.5% year-on-year.While construction-related employment in the States is still 25% lower than the April 2006 peaks, Cantor said that February saw the largest increase in the sector in over five years. "[This] could mark the cyclical upturn that will add to Ashtead's structural growth," de La Soujeole said."These are encouraging trends which underpin our positive stance on Ashtead. We are buyers of the stock given the strong momentum in the business and because we think a cyclical upturn is due."In spite of the positive comments, shares were down 1.78% at 581p by 11:05.BC