Aston Martin Lagonda Global Holdings PLC (LSE:AML) updates have come to be viewed with trepidation by its loyal band of shareholders and next month’s update is unlikely to be any different.
Deutsche Bank says the emphasis will be on the current year (2025) after two profit warnings and yet another round of emergency funding by the luxury car maker in 2024.
Numbers should be in line with the recent guidance, predicts Deutsche Bank, with volume growth and an adjusted EBITDA margin above 20%.
But the focus will be on the outlook and how the guide looks versus the current 2025 ambitions.
“ In our view, both topline and adjusted EBITDA ambitions in absolute numbers need to come down," said the German bank.
“This is well reflected in our numbers and consensus as well.
“We remain on the sidelines for Aston Martin on balanced risk/reward.”
Hold with a 140p target is the bank’s view.
Citi is another that thinks the targets are too high with scepticism relating to earnings and the delayed launch of its Valiant model, developed in collaboration with Formula One driver Fernando Alonso.
"We continue to think that, even with its brand new models and improved commercial strategy, these targets remain ambitious," said the American bank, reiterating its 'hold/high risk' recommendation and 132p share price target.
Peel Hunt, said, "While the company confirmed its ambition to reach £500 million in adjusted EBITDA in 2025, we remain below that guide and also would not expect consensus to move much from the £430 million level.”
Aston Martin earnings are due on 26 February.