Ashtead Technology Holdings – I see its shares climbing 25% to 525p over the next year, latest Trading Update reported its ongoing revenue growth

Mark Watson-Mitchell - 07.08.2026

On Tuesday, 1^st September, Ashtead Technology Holdings plc (LON:AT.), a leading provider of subsea technology solutions to the global offshore energy sector, will issue its Interim Results for the six months to end-June 2026 and should confirm its comfort with full-year market expectations.

Since the start of the year this group’s shares have risen from 300p to 536p, before easing back to trade the 400p to 460p range over the last couple of months.

Ahead of the £337m-capitalised group announcing its figures, I take the view that its shares, now at around 419p, are undervalued and offer an attractive 25% Upside over the next year.

The Business

With some 650 employees, the Aberdeen-based Ashtead Technology group’s technical expertise and technologies enable its customers to understand the subsea environment and manage offshore energy production infrastructure.

The business operates globally, servicing customers from its facilities located in key offshore energy hubs.

With specialist equipment, advanced technologies and support services it enables its customers to understand the subsea environment and manage offshore energy production infrastructure.

Its offering is applicable across the lifecycle of offshore wind farms and offshore oil and gas infrastructure, with over 85% of its equipment fungible across both markets.

The group’s services include survey & robotics, mechanical solutions and asset integrity. Its survey & robotics equipment includes environmental, geophysical, hydrographic, land surveying, metocean, remote visual inspection, ROV sensors, and subsea inspection.

The company’s mechanical solutions equipment includes coating removal and cleaning, cutting, dredging, ROV and diver tooling, recovery tools and back deck equipment.

Its asset integrity equipment includes imaging and inspection, oceanographic and marine growth removal.

Half Year Trading Update

On Wednesday, 15^th July, the group reported first-half revenues of approximately £100.2m, a 1% increase year-on-year, despite challenging market conditions including Middle East conflict and weaker renewables activity in Taiwan.

The company anticipates adjusted EBITDA margins of around 37.8% and EBITA margins of approximately 25.0% for the period, with margins expected to strengthen in the second half, maintaining a full-year EBITA margin target in the high twenties.

Outlook

The company noted that throughout the remainder of the year it will remain focused on project delivery and strategic growth initiatives. 

The impact of the geopolitical tension in the Middle East continues to be monitored closely and the group is working with its customers and partners in the region to manage changing vessel schedules and project priorities.  

Assuming that the disruption associated with the Middle East conflict eases through the second half, and there are no major changes to project scheduling, the Board has positive expectations.

The Equity

There are around 80.98m shares in issue.

The larger holders in include Fidelity Management & Research (9.07%), Lothian Pension Fund (5.00%), Schroder Investment Management (4.97%), Jupiter Asset Management (4.61%), Rathbones Investment Management (4.30%), abrdn Investment Management (3.74%), Pentwater Capital Management (3.71%), Hargreaves Lansdown Fund Managers (3.64%), Aberforth Partners (3.54%), and Moneta Asset Management SAS (3.10%).  

Broker’s Views

There are some nine analysts closely following the group’s progress, eight of whom call the shares out as a Buy, while the other looks for it to Outperform.

Following the recent Trading Update, analyst Daniel Slater, at Zeus Capital, rates the shares as a Buy, with a 600p Target Price.

He commented that:

“Ashtead Technology is a subsea services and equipment rental company in the global offshore oil and gas and renewables industries, with 15 facilities across nine countries and a fleet of over 30k assets.

The company has significantly expanded via eight acquisitions executed since 2017, including the £63m Seatronics/J2 deal in 2024.

We expect M&A to continue as a focus for the company, but it is growing organically too, using its global sales network and relationships to make the most of its expanded offering.

Ashtead is also able to influence margins, via acquisition synergies but also adjustments to mix post its various deals.

The company’s markets continue to expand, as oil and gas CAPEX ramps up post the period of lower investment after 2015 and over covid, with companies increasingly focusing offshore in search of new fields and development projects.

Ashtead’s services and assets also apply equally to offshore renewables activities, giving a diversifier and potential additional source of growth.

Going forward, we look for further acquisitions, additional organic growth, and potential margin improvement opportunities to all continue driving earnings progress, in what is a broadly supportive environment for an offshore company.”

His estimates for the current year, to end-December, are for sales revenues of £213.2m (£203.2m), with adjusted pre-tax profits of £49.1m (£48.8m), with slightly lower earnings of 45.2p (48.9p) but with a gently increased dividend of 1.4p (1.3p) per share.

For the coming year, he sees sales of £228.1m, profits of £56.0m, earnings of 51.3p and a 1.5p dividend.

Slater’s estimates are slightly lower than the analyst consensus average of £215.4m sales for 2026, £50.9m profits, 46.7p earnings and a 1.4p dividend.

For 2027, the average is for £231.2m sales, £57.6m profits, earnings of 52.8p and a 1.5p dividend.

The analyst average for 2028 looks for £240.6m sales, £61.3m profits, 56.3p earnings and a dividend of 1.6p per share.

The consensus average Target Price is 647p, with the Lowest at 560p and the Highest at 725p.

Berenberg Bank has a Buy on the shares with a 700p TP, whilst RBC Capital Markets rate the shares to Outperform and a 560p TP, with Stifel calling them a Buy with a 600p TP.

My View

My fairly modest prediction is that this group’s shares are undervalued at 419p and offer capital appreciation of easily 25% over the next year.

That is despite the Middle East disruption.

But just taking a look at the broker’s analyst projections of earnings and Target Prices should highlight why I take the view that the shares are cheap.

(Profile 26.08.25 @ 344p set a Target Price of 430p*)

(Profile 19.03.26 @ 393p set a Target Price of 450p*)

(Profile 07.08.26 @ 419p set a Target Price of 525p)

Ready to run up again