Aston Martin Shares at Neutral: Goldman Sees ‘Tumultuous Times’ for European Car Makers

Aston Martin Lagonda (LON: AML) was initiated at Neutral by Goldman Sachs in a recent note to clients, with the firm setting a 61p price target on the stock. 

However, the bank cautioned that European car makers are heading into “tumultuous times.” 

Aston Martin shares are down over 41% for the year-to-date, despite a more than 5% rise in the last week. The stock currently trades around 61.55p. 

Goldman Sachs said the sector faces simultaneous pressures from rising Chinese competition, ongoing shifts toward battery-electric vehicles and a challenging regulatory backdrop.

Chinese manufacturers are accelerating their global ambitions, intensifying competitive risks for established European players. 

The firm also noted that tariffs, currency volatility and tightening EU emissions standards “add to the burden,” creating an environment where operational visibility is increasingly difficult for auto makers.

Despite the pressure, Goldman Sachs highlighted what it sees as an overly bearish stance toward Europe’s largest car manufacturers. 

It noted that BMW (rated at Buy), Mercedes-Benz (Buy), Volkswagen (Neutral) and Renault (Neutral) now trade at negative industrial stub valuations, a level the firm described as premature. 

Furthermore, Goldman argued that the premium segment appears the most undervalued, even as structural headwinds weigh on the industry.

However, the bank maintained a cautious view of Aston Martin specifically, citing structural concerns over the company’s balance sheet. 

The issues limit the bank’s ability to take a more constructive stance on the stock despite the broader undervaluation it identifies within the luxury auto sector.

The rating follows recent resets from other banks. Deutsche Bank cut its price target to 80p last month while keeping a Hold rating, while JPMorgan reduced its target to 58p and reiterated a Neutral view. Overall, only 2 of 12 analysts currently have a Buy rating on the stock, with 8 seeing it as a Hold and 2 assigning it a Sell rating.