Deutsche Banks lowers target price on Aston Martin following profit warning
Aston Martin Lagonda Global Holdings
120.60p
16:45 05/11/24
Analysts at Deutsche Bank lowered their target price on Aston Martin Lagonda from 180.0p to 145.0p on Thursday following the group's recent profit warning.
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Deutsche Bank said Aston Martin had reported "disappointing" Q3 results and cut its earnings and volume outlook for 2022.
While DB said, fundamentally, AML's ASP development appeared "strong and supportive", supply chain issues were hurting the company disproportionately.
"With about 400 units impacted from missing interior parts, rising inventory and supply chain cost are hurting the company and although management points to resolving that issue in Q4, the market is struggling to take confidence in that statement," said Deutsche.
The German bank stated it remains "cautious" on the transitoriness expressed by management, particularly following similar issues in Q2 and "continuously stressed" global supply chains.
Although DB cut its forecasts and target price on the shares, it opted to remain at 'hold' on the stock.
Reporting by Iain Gilbert at Sharecast.com