Aston Martin: Jefferies downgrades its recommendation

(CercleFinance.com) - Jefferies downgrades its recommendation on Aston Martin Lagonda (AML) from 'buy' to 'hold', with a price target lowered from 250 to 120 pence, having 'difficulty seeing a scenario that does not require new equity'.


While acknowledging that 'in his first public action, new CEO Adrian Hallmark has not hesitated to take tough decisions to reset ambitious targets', the broker judges that the cash obtained in early August 'leaves no room for error'.

Jefferies reduced its adjusted EBITDA estimate for 2024 by 28% to £279 million, and more than tripled its cash outflow estimate to £424 million, taking the British carmaker's year-end net debt to £1.4 billion.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.