Aston Martin Lagonda Global Holdings PLC (LSE:AML) should enjoy a seasonal fuel injection for the final quarter of last year, according to Barclays, ahead of the supercar maker's annual numbers on 28 February.
The "usual seasonal bump" is forecast for the fourth quarter with regards to revenues and earnings improvement, the bank said.
Earnings should be helped by production of higher-margin Specials and increasing DB12 volumes, analysts added, meaning gross margin should cross the 40% target during the quarter.
With regards to the 2024 outlook, the company has already set the scene given that it has pointed to substantially achieving the 24/25 targets in 2024.
"In our view, this should be seen as 'up to' or 'around' rather than precisely guiding for £2 billion in revenues and £500 million of adjusted EBITDA."
In November, Barclays picked Aston Martin alongside Ferrari as its among preferred European auto sector stocks, as the bank's analysts see the market "normalising".
The shift in market conditions, with order books being fulfilled, used car prices retreating and tougher economic conditions, have forced manufacturers to cut prices.
Limited volume and mix growth could present another headwind for the sector, the analysts said, alongside sticky inflation and the ongoing switch to battery electric vehicles (EVs), which currently offer lower profit margins.
However, sustained demand for luxury brands could mitigate any pressures, the bank reckons, alongside any potential falls in raw material costs.
Another boost for Aston Martin shares that month came when Canadian billionaire Lawrence Stroll, the company's largest shareholder, sold a minority stake in the Aston Martin Formula One team to US private equity firm Arctos Partners.
The investment by Arctos, which has a stake in the Boston Red Sox and Liverpool Football Club owner Fenway Sports Group, values the F1 team at about £1 billion and sparked expectations of greater investment in the team and therefore for the brand.