It’s been a rough year for the investors of Aston Martin Lagonda Global Holdings PLC (GB:AML) with the stock trading down by 76% – and it plunged further this week.
News that the company is seeking more funding appears to have further pulled the stock down in the last few days.
Aston Martin is a manufacturer of luxury sports cars based in London, UK.
The company has a strong brand (it is James Bond’s car of choice) with some impressive vehicles in its portfolio.
Will the sustainable approach work?
Aston Martin is on a path to creating a sustainable business. The company’s future product strategy is in line with this approach, and it aims at a fully electrified portfolio of SUVs and GT sports cars by 2030.
The new funding can provide the much-needed support for its new product pipeline, as Aston Martin is already struggling with mounting debt of £1.19 Billion as of December 2021.
Aston’s executive chairman Lawrence Stroll has highly ambitious plans to generate revenues of £2 Billion by 2025. However, there is a long road ahead for the company and no major turnaround is expected in the near future.
View from the City
According to TipRanks’ analyst rating consensus, Aston Martin stock has a Hold rating. The stock has ratings from 4 analysts, out of which, three are Hold and One is Sell recommendation.
The average Aston Martin price target is 1107.5p with an upside potential of 152.3%. The analyst price targets range from a low of 700p to a high of 1430p.
Conclusion
The financial health of the company appears alarming with huge debts and operating losses. The stock looks like an investment for long-term with no near term breakthrough.
