Zeus Capital maintained its buy recommendation and 600 pence price target on Ashtead Technology (LON: AT.) in a note this week following the subsea services company’s full-year 2025 results, reported on March 17, arguing the stock looks undervalued relative to both current peers and historical multiples.
Ashtead reported revenue growth of 21% to £203.2 million for fiscal 2025, with adjusted EBITA of £59.1 million and organic revenue growth of 3%, alongside 19% inorganic growth following the Seatronics and J2 Subsea acquisitions completed in late 2024.
Zeus analyst Daniel Slater said updated forecasts show broadly unchanged 2026 numbers, with slightly lower revenues offset by slightly higher margins.
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The firm is forecasting organic revenue growth of 5% for 2026, ahead of the 3% reported for 2025, as the company begins to capture more opportunities from its expanded post-acquisition platform.
“There remains the potential for steeper growth if Ashtead announces any new acquisitions,” the note said.
On valuation, Zeus flagged what it sees as a meaningful discount to historical norms. Ashtead currently trades at 5.3x 2026 EV/EBITDA and 9.1x price-to-earnings, broadly in line with UK oil services and industrial rental peers at approximately 5.0x and 9.0x, respectively.
However, Zeus noted that historic peer multiples have been closer to 7x EV/EBITDA and 14x earnings, which is the basis for its 600 pence price target.
Zeus noted that it made no specific adjustments for Middle East uncertainty, highlighting that any near-term impact could be recovered over the remainder of 2026. The firm continues to expect M&A to remain a key growth driver alongside organic expansion.
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