Citi analysts have cut their target for Aston Martin Lagonda (LSE:AML) as the sports car maker needs a "sharply improved" performance in the back end of the year to meet its guidance.
"Small steps" have been in evidence after new CEO Adrian Hallmark joined in September from Bentley, with the luxury automotive group reported another large loss and free cash flow outflow in the first quarter of 2025, Citi said in a note to clients. "Even EBITDA" was in negative territory.
Guidance for the second quarter is "not much better", though Aston Martin kept its full-year outlook unchanged for positive adjusted EBIT for 2025 and positive free cash flow in the second half.
Whilst this had looked "even more difficult" with tariffs, last week's UK tariff deal has cut this tariff to 25%, which "looks more manageable".
"Nevertheless, as ever, AML requires a sharply improved Q4 25 performance to meet its guidance," Citi said, with the difference this year, "if any", is that the first-half performance reflects a sharp inventory adjustment without specials.
The second half will see production move back to retail sales levels, with up to 200 Valhalla specials delivered in the fourth quarter.
"Obviously, investors will wait to see," said the US bank, cutting 2025 and 2026 revenue and EBIT forecasts and its share price target to 96p from 132p, with a 'neutral - high risk' rating still attached.