Aston Martin: Oddo BHF raises its recommendation despite the warning

(CercleFinance.com) - Oddo BHF has raised its recommendation on Aston Martin Lagonda (AML) from 'underperform' to 'neutral', with the target price raised from 100 to 120 pence.


AML issued a press release last night announcing a further downward revision of its 2024 guidance (-4% vs css EBITDA VA in the middle of the range), as well as a £210 million capital raising, of which £100 million in debt and £110 million via ABB placement (7% discount) with, in particular, an increase in Yew Tree's capital (21% pre-placement).

The £100 million 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', says the analyst.

AML has also confirmed its target of generating sales of £2 billion and EBITDA of £500 million by 2025, which Oddo BHF feels is 'ambitious', given the levels it is expected to reach in 2024 (£1.6 billion sales, £275 million).


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