ASHTF - Ashtead: Long-Term Buy

Summary

• Industrial equipment supplier Ashtead reported strong financials recently and upgraded revenue forecasts. Despite high inflation and a recession in the US, its biggest market, it's poised to make further gains.
• The US’s infrastructure spending is expected to bolster the construction sector, while Ashtead’s strong margins indicate pricing power. Its interest coverage ratio is also healthy, despite higher debt.
• Its market valuations are higher than those of its peer, United Rentals, despite a 37% share price fall in 2022. But all considered, it is still a good long-term buy.

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