Aston Martin: Oddo BHF upgrades stock

(CercleFinance.com) - Oddo BHF has upgraded Aston Martin Lagonda (AML) shares from "neutral" to "outperform", raising its target price from 210p to 310p.


The analyst bases his opinion on the increase in Geely's shareholding from 7% to 17%, making it the group's third largest shareholder, behind Yew Tree and PIF.

Oddo BHF says this operation will fuel speculation about a possible takeover of the group. Such an operation would be in line with Geely's multi-brand strategy and would generate technological synergies, particularly in electric vehicles, he says.

In addition, this cash injection is welcome given the group's fragile financial situation (net debt of £868m at end-Q1) and should bring the gross cash position at the year-end to over £500m, the broker estimates.


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