Ashtead Group Plc. (LON: AHT) stock gained a position in the top 10 risers on the London Stock Exchange today, rising up 4.4%. The company provides rental services for a wide range of construction and industrial equipment, including pumps, power generators, heating and cooling systems, scaffolding, lifting equipment, etc.
What Analysts Said Before the Current Surge
Before this rise, several equity analysts had released reports on Ashtead Group Plc’s stock (AHT). During mid-September, Numis Securities published a report in which they indicated a “buy” rating and set a target price of £7,000. Deutsche Bank, on the other hand, gave a “sell” rating and set a target price of £4,460 on Wednesday, June 7th.
Some other big names like Jefferies Financial Group also indicated a “buy” rating and set a target price similar to that of Numis Securities in a report which was published way back in June. JPMorgan Chase & Co. gave AHT stock price an “overweight” rating and set a £6,300 price objective at the start of September. Moreover, the Royal Bank of Canada raised its target price from £5,450 to £5,500 and gave the stock a “sector perform” rating in a research report in mid-June.
Who was right?
Now, when synchronizing the targets with analysts’ take, the ones that gave a bullish rating during June were proven right. The AHT stock price made a high of £5794 during August. However, the bullish ratings given in September were incorrect or predicted a longer horizon, as the stock had fallen 9.3% before the current day’s surging price.
Technical Analysis and Prediction of AHT Stock Price
The AHT stock price has broken an uptrend as it fell during the start of September. The current trading price is £5032, the immediate support level is £4795, and the immediate resistance is £5060. The 50-day EMA is on the same level as the 150-day EMA, at £5180.
The relative strength index, on the other hand, is near the neutral level, at 47, which shows that the stock price has enough room to break the resistance before the RSI reaches its overbought zone. The AHT stock price prediction will be bullish if the bulls push the price past the immediate resistance. The target price, as per the current analysis, is £5310.
Conclusion
Ashtead Group Plc. (LON: AHT) came in the top 10 gainers on Wednesday after the stock rose more than 4% in a single day. The analysts predicted a bullish trend, however, some of them got it wrong as the uptrend was broken at the start of September. The current stock price is trading near a resistance while the prediction is bullish.
Technical Levels
Support: £4795, and £4516
Resistance: £5060, and £5268
