Jefferies downgrades its recommendation from ‘buy’ to ‘hold’ on Aston Martin Lagonda (AML), with its price target lowered from 250p to 120p, having ‘struggled to see a scenario that does not require new equity’.
While it recognizes that ‘in his first public action, the new CEO Adrian Hallmark did not hesitate to make difficult decisions to reset ambitious objectives’, the broker judges that the liquidity obtained at the beginning of August ‘leaves no room for ‘error’.
Jefferies cut its adjusted EBITDA estimate for 2024 by 28% to £279 million and more than tripled its cash outflow estimate to £424 million, bringing expected year-end net debt to £1.4 billion for the British car manufacturer.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyzes distributed by Cercle Finance only constitute a decision-making aid for investors. Cercle Finance cannot be held responsible directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional advisor before making any investment. This indicative information does not in any way constitute an inducement to sell or a solicitation to buy.
