Skip to content

Aston Martin Share Price Crashes 9% As Deutsche Bank Cuts Price Target

Nigel Frith Nigel Frith
Add as a preferred source on Google
Aston martin car

Shares of Aston Martin Lagonda Global Holdings PLC (LON: AML) have collapsed 9% today after Deutsche Bank slashed its price target for the stock.

The banking giant said it expects a bleak performance from the car-maker in the second quarter. Last week, Aston Martin announced it is seeking to raise around £180 million to bolster its finances.

“Today we announce further steps to improve financial flexibility in a period of ongoing uncertainty with this additional funding to execute the business plan,” new chief executive Lawrence Stroll said in a statement.

The company also said that the Q2 sales are “expected to be below first quarter’s take”.

This warning prompted Deutsche Bank to issue a note today to cut the stock price target from 40p to 35p. Still, Deutsche has kept a “hold” rating for the Aston Martin stock.

The banking giant now expects losses to exceed £80 million in addition to negative free cash flow.

Aston Martin share price plunges July 2020

Shares of the company are trading around 9% lower near 45.00p. Aston Martin share price has lost nearly 40% in the last two weeks. Still, shares trade at a premium of 23% compared to Deutsche’s target price.

Aston Martin is due to present its second-quarter results on July 29.

Nigel Frith
Nigel Frith
Team Member

Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.

Stay ahead of the markets

Sign up to our free Morning Markets email, every weekday before the open.