Aston Martin: Credit Suisse initiates coverage with 'buy'
(CercleFinance.com) - This morning Credit Suisse has begun its coverage of the share of British upmarket carmaker Aston Martin with a buy rating ("outperform"), following its recent flotation on the London Stock Exchange.
The broker's target price of 2,012 pence suggests upside potential of around 25%.
"We think Aston Martin's (AML) Second Century Plan (recently presented by the group that was founded in 1913, ed.) will enable it to grow its top-line and margins significantly," the report states. Credit Suisse therefore forecast a 22% CAGR in unit sales by 2022 (i.e. from 5,098 units in 2017 to 14,000 by 2022), "making Aston Martin the world's fastest-growing automotive brand," Credit Suisse expects, in particular as the group's capital intensity is low.
This robust trend would boost the group's operating margin, which, after 13.2% in 2018, would rise to 20.2% in 2022, analysts predict.
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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.
The broker's target price of 2,012 pence suggests upside potential of around 25%.
"We think Aston Martin's (AML) Second Century Plan (recently presented by the group that was founded in 1913, ed.) will enable it to grow its top-line and margins significantly," the report states. Credit Suisse therefore forecast a 22% CAGR in unit sales by 2022 (i.e. from 5,098 units in 2017 to 14,000 by 2022), "making Aston Martin the world's fastest-growing automotive brand," Credit Suisse expects, in particular as the group's capital intensity is low.
This robust trend would boost the group's operating margin, which, after 13.2% in 2018, would rise to 20.2% in 2022, analysts predict.
Copyright (c) 2018 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.