Plenty of Runway Ahead for Ashtead to Gain Market Share; Raising Our Fair Value to GBX 4,850

Ashtead Group is the second-largest rental equipment business in the U.S., where it derives 90% of its profits, operating under the Sunbelt Rentals brand. The business has successfully grown its market share in a highly fragmented market from 4% in 2007 to 13% in 2023 in the United States through a combination of its “cluster” strategy and bolt-on acquisitions. Despite growing its store count by 40% since the start of 2021, the industry remains highly fragmented, providing plenty of runway ahead for Ashtead to continue to gain share.