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.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
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.
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.
