The Aston Martin Lagonda Global Holdings PLC (LON: AML) share price surged 6.69% after the impressive performance of its Formula 1 driver Fernando Alonso in the Dutch Grand Pree held in the Netherlands over the weekend.
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Fernando Alonso was position two behind leader Max Verstappen, who came in first. The Formula 1 racing circuit is a crucial marketing channel for Aston Martin, which was one of the first things Lawrence Stroll did after taking over as the company’s Executive Chairman.
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Much of the company’s recent success has come from participating in the Formula 1 racing circuit, which features the Aston Martin racing team with two lead drivers, Fernando Alonso and Lance Stroll, the Chairman’s son, who came in at position 11.
On a different note, Aston Martin recently got a buy rating from the first analyst to cover the firm after its 2018 IPO. Jefferies’ Philippe Houchois lifted his rating to buy from hold, saying the British ultra-luxury car manufacturer’s net debt had stabilised and its focus on traditional “front-engine” cars like the Vantage and DB12 should boost sales.
Houchois gave Aston Martin an underperform rating about a week after the firm’s trading debut five years ago. He questioned the lofty IPO price and also the use of share sale proceeds. The stock fell over the next few years but has soared 120.6% in 2023.
The analyst noted, “I’ve always liked Aston Martin as a story, but the balance sheet was not balanced. The situation is still tense, but Lawrence Stroll has managed to recapitalise without sacrificing the share price, which is quite skilful.”
Lawrence Stroll has been highly involved in the company’s F1 racing team and has been known to set ambitious targets for the team’s two drivers. However, Lance Stroll has not performed as well as his teammate Fernando Alonso this season.
Despite the mixed performance of its two drivers, Aston Martin’s participation in the racing circuit has led to more sales than expected, with the company selling out on most of its new vehicle models immediately after launch and for months afterwards.
The Aston Martin (AML) share price.
The Aston Martin (AML) share price surged 6.69% to trade at 360.82p, from Friday’s closing price of 338.20p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.