Ashtead Raises Its Revenue Guidance for the Third Consecutive Quarter; FVE Unchanged

No-moat Ashtead continues to execute on its growth strategy and raised its revenue guidance for the third consecutive quarter. Management revised its full-year group revenue outlook to 21%-23%, an increase from the previously upgraded guidance of 18%-21%. However, the capital-intensive nature of the business means growth is met with incremental additions of capital investment, which sees the group's free cash flow guidance unchanged at $300 million. While we plan to adjust our estimates (mostly to include a greater revenue contribution from acquisitions), we reiterate our GBX 4,350 fair value estimate. Shares are fairly valued.