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Aston Martin shares drive higher as raft of brokers initiate coverage two months after flotation

US investment banks Goldman Sachs and BofA Merrill Lynch both started Aston Martin with ‘buy’ ratings, while Swiss bank Credit Suisse tagged it as an ‘outperform'
Aston Martin car
But global banking giant HSBC and French broker Kepler Chevreux both started the stock with ‘hold’ ratings

Shares in Aston Martin Lagonda Global Holdings PLC (LON:AML) drove higher on Tuesday as a raft of brokers initiated coverage on the luxury carmaker two months after its London Stock Exchange flotation.

US investment banks Goldman Sachs and BofA Merrill Lynch both started the stock with ‘buy’ ratings, while Credit Suisse tagged it as an ‘outperform’.

READ: Aston Martin moves slowly into gear in conditional trading

In a note to clients, the Swiss bank’s analysts forecast Aston Martin reporting a 22% compound annual growth rate (CAGR) in unit sales by 2022, making it the world's fastest-growing automotive brand.

They think the key catalyst will be the start of production for the Aston Martin DBX sports utility vehicle (SUV) by the end of 2019.

The analysts also believe the car group’s Second Century Plan will enable it to grow its top-line and margins significantly.

Less optimistic, however, were global banking giant HSBC and blue-chip French broker Kepler Chevreux, both of whom started Aston Martin shares with ‘hold’ ratings.

In early afternoon trading, Aston Martin shares were nearly 1% higher at 1,610p, although they still remained well below the 1,900p offer price following a poor opening few months trading.

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Aston Martin Lagonda Global Holdings PLC Timeline

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