Aston Martin: Jefferies downgrades stock

(CercleFinance.com) - Jefferies has downgraded Aston Martin shares from "hold" to "underperform", completely slashing its target price for them from 530p to 120p, citing a continuing risk that the sports car maker will make a capital increase.


"Despite having just completed a major rights issue, AML still screens as candidate for future recapitalization by the time the business achieves a viable operating structure, possibly 2024," the broker said.

"For now, stabilized liquidity gives management more time to execute a strategy that is yielding results on brand/ASPs but no progress yet on industrial scale," it adds.


Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.