JPMorgan keeps Ashtead at 'overweight'

17th Jun 2015 10:13

Shares in equipment rental group Ashtead was rebounding slightly on Wednesday after a cool reaction to its full-year results the previous day, with JPMorgan Cazenove providing a boost after keeping an 'overweight' rating.The broker said that after a recent poor share-price performance, "we see an attractive entry point".The stock fell 2.7% on Tuesday despite record pre-tax profits of £490m, up 35% at constant exchange rates.JPMorgan said the subsequent analyst meeting with management "underlined the opportunity from ongoing improvements in returns from newer stores, as they continue to converge towards the returns seen in more mature stores"."We were also reassured by the stabilisation in oil and gas rates and volumes in the last two months, and the limited expected impact for FY16."However, the broker did note that physical utilisation for May and June at Ashtead was disappointing. "[We] will need to continue its recent upward trend to ensure returns on investment continue to improve," it said.The stock was up 0.4% at 1,101.74p by 11:30.