What Should Ashtead Technology Shareholders Do Now? Zeus Capital Weighs In

Zeus Capital told investors to hold their nerve after Ashtead Technology (LON: AT.) shares slumped on Thursday following a profit warning. The firm maintaining a Buy rating on the stock, while trimming its price target to 560 pence from 600 pence.

The subsea equipment rental group warned that client projects in the Middle East it had expected to slip into the second half of 2026 have now been pushed into 2027, with knock-on delays in its Europe and Americas divisions.

Guidance implies a 5% cut to consensus revenue of £214.2 million and a 15% fall in EBITA from £59.2 million, with the sharper profit impact reflecting mix, the Middle East is the group’s highest-margin division, reporting a 59.8% EBITDA margin in 2025.

“There has been the potential for a warning from Ashtead ever since the USA/Iran situation began in late February,” analyst Daniel Slater wrote, adding that the downgrade appears “down simply to the passage of time and how long the Middle East situation has continued for.”

On what shareholders should do, Zeus was blunt about near-term pain. “Clearly there is going to be short term downside,” Slater said, flagging the risk of further warnings while the conflict persists.

“Beyond that, the immediate danger is whether there will be further profit warnings. This is clearly a risk over the coming months as long as the Middle East conflict goes on (despite the downgrade today), with some projects (particularly in the region) remaining at risk of further delays,” the analyst added.

Medium term, the broker pointed to a strong underlying business with an established record of profit and cash generation, a global footprint and an ongoing acquisition strategy, plus potential support from higher oil and gas prices and pent-up delayed capex.

“Based on this, while we acknowledge the potential for further share price downside short term, we are maintaining our Buy recommendation today,” he concluded.