Ashtead Raises Guidance Following Strong First-Quarter Revenue Growth; Shares Fairly Valued

No-moat Ashtead Group raised full-year rental revenue guidance following first-quarter revenue growth of 22%, which exceeded management’s forecasts. Full-year rental revenue guidance was lifted by 3%, translating into expected full-year growth between 15% and 17%, which falls in line with our expectations. The upgraded outlook was driven by improvements in volumes and rates given strong demand for rental equipment. We slightly raise our fair value estimate to GBX 4,350, which is primarily driven by the weakening of the British pound. Shares are fairly valued.