Aston Martin: Oddo BHF upgrades, despite warning
(CercleFinance.com) - Oddo BHF has raised its recommendation on Aston Martin Lagonda (AML) from 'underperform' to 'neutral', with a target price raised from 100p to 120p.
AML issued a press release last night announcing a further downward revision of its 2024 guidance (-4% vs. VA css EBITDA in the middle of the range), as well as a £210m capital raising, of which £100m in debt and £110m via ABB placement (7% discount) with, in particular, an increase in Yew Tree's capital (21% pre-placement).
The £100m debt was raised at a similar rate to existing issues (10.4% on the £ portion, 10% on the $ portion, maturing in 2029).
This provides 'some breathing space in the short term, but there is still some way to go before we can be reassuring, the analyst says.
AML has also confirmed its target of generating sales of £2bn and EBITDA of £500m by 2025, which Oddo BHF feels is 'ambitious', given the levels it is expected to reach in 2024 (£1.6bn sales, £275m).
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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.
AML issued a press release last night announcing a further downward revision of its 2024 guidance (-4% vs. VA css EBITDA in the middle of the range), as well as a £210m capital raising, of which £100m in debt and £110m via ABB placement (7% discount) with, in particular, an increase in Yew Tree's capital (21% pre-placement).
The £100m debt was raised at a similar rate to existing issues (10.4% on the £ portion, 10% on the $ portion, maturing in 2029).
This provides 'some breathing space in the short term, but there is still some way to go before we can be reassuring, the analyst says.
AML has also confirmed its target of generating sales of £2bn and EBITDA of £500m by 2025, which Oddo BHF feels is 'ambitious', given the levels it is expected to reach in 2024 (£1.6bn sales, £275m).
Copyright (c) 2024 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.