Ashtead (AHT) - The recovery continues

Ashtead "buy," estimates reduced

LONDON, December 28 - Analysts at Panmure Gordon & Co reiterate their "buy" rating on Ashtead Group Plc while reducing their estimates for the company. The target price is set to 220p.

In a research note published this morning, the analysts mention that the cash tax rate estimate for Ashtead has been raised from 10% to 20%, in view of the company’s increased profitability. According to the analysts, Ashtead’s share price is expected to continue to appreciate significantly in 2006, benefiting from the robust US non-residential construction market. The EPS estimates for 2006 and 2007 have been reduced by 10% to 13.6p and 14.4p, respectively, to reflect the revised estimates for the cash tax rates.