Oriel sees potential in Ashtead despite uninspiring results

18th Jun 2014 15:51

Despite Tuesday's results failing to inspire the market, broker Oriel was very bullish on construction equipment rental group Ashtead and said it foresaw "growth enduring over the next several years".The results may not have contained any material upgrades, but they did demonstrate the "remarkable progress" that the group has made and the potential for its non-residential construction markets in the US and the UK.Oriel expects an enduring construction market recovery and for Ashtead to "ride this wave" thanks to its proven ability to take market share in a fragmented equipment rental market.Wednesday's release in the US of May's Architect Billings Index showed a jump to 52.5, indicating growth, from a series of sub-50 declines. Analysts admitted this was only a single point in a volatile series but reaching positive territory was consistent with views of a growing non-residential market. OH