Jefferies upgrades Aston Martin to buy, shares rally

Aston Martin Lagonda rallied on Friday after Jefferies lifted its stance on the shares to ‘buy’ from ‘hold’ and hiked the price target to 420p from 300p.

The bank said it sees potential for the luxury car maker to build on the re-positioning started by Chairman Lawrence Stroll.

It said three capital raises in as many months have helped AML to deal with its balance sheet liquidity.

In addition, the operating outlook appears "more encouraging than ever", with a focus on front-engine cars and average selling price upgrades.

Jefferies also said it sees room to grow volume and refinance debt, and that operating earnings are likely to improve gradually.

At 1000 BST, the shares were up 5.1% at 337.20p.