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Aston Martin shares rev up ahead of results

Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares were on the rise ahead of full-year results on Wednesday, which are expected to be fairly good.

The stock climbed 4% to 176.50p today, having fallen over 58% in the seven months since reaching two-year highs just below 400p last July.

In November, the supercar manufacturer said that third-quarter numbers were good, with revenue up 21% across the first nine months of the year.

Earnings in the fourth quarter should be strong, analysts at Barclays reckon, helped by production of higher-margin Specials and increasing DB12 volumes.

Goldman Sachs said it expects fourth-quarter adjusted EBITDA of £147 million and £268.2 million for the full year, though the company-compiled consensus forecast is even higher.

Ongoing product launches, such as the Aston Martin Vantage road car, will add costs as deliveries are scheduled to begin in the second quarter of 2024.

For the whole of 2024, Goldman forecasts adjusted EBITDA of £455 million, which is around 3% ahead of the City average.

"We expect the new Vantage to play an important role in improving AML’s financials over coming quarters," analysts said.

In November, shares in the FTSE 250-listed group got a boost as Canadian billionaire Lawrence Stroll sold a minority stake in the Aston Martin Formula One team to US private equity firm Arctos Partners, which highlighted the value of the team.

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