Key points:
- Aston Martin Lagonda reported Q3 results this week
- Analysts at JPMorgan and Deutsche Bank cut their price targets on the stock
- AML shares regained the majority of Wednesday’s losses
Following its third-quarter results, Aston Martin’s (LON: AML) share price target was cut by analysts at JPMorgan and Deutsche Bank on Thursday.
The company reported on Wednesday that third-quarter revenues surged by 33% to £316 million, driven by higher average selling prices (ASP) of £189,000 compared to Q3 2021’s £148,000 ASP. However, the luxury car manufacturer revealed an operating loss of £148 million, including a £71 million annualised increase in depreciation and amortisation costs.
Aston Martin shares fell over 15% in reaction to the results. However, its shares regained most of those losses on Thursday, rising over 17%.
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JPMorgan analyst Jose Asumendi cut the firm’s price target on Aston Martin Lagonda to 112p from 1,430p in a note on Thursday, maintaining a Neutral rating on the shares.
In addition, Deutsche Bank analyst Christoph Laskawi lowered his firm’s price target on Aston Martin Lagonda to 145p from 180p, keeping a Hold rating on the stock.
Before the release of AML’s third-quarter results on October 10, Laskawi resumed coverage of Ason Martin, assigning the initial 180p price target, saying he believed the company would report “decent” Q3 results overall with volumes and mix trending well.
Meanwhile, in late September, Bernstein analyst Daniel Roeska upgraded Aston Martin to Outperform from Market Perform with a 180p price target in a research note, telling investors he believes AML’s equity raise “averted a liquidity crisis and cleared a path to earnings and cash flow break-even in 2024.” However, he believed the share price at the time didn’t reflect the upside.
