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Aston Martin Lagonda Global Holdings PLC

Aston Martin recovers some ground after post-results drop as two more brokers initiate coverage on the stock

Deutsche Bank started Aston Martin with a ‘buy’ rating and a 2,000p price target, pointing out that the luxury icon with a 105-year heritage has a global reach

Aston Martin car
Meanwhile, JPMorgan’s analysts started the car maker with an ‘overweight' rating and a price target of 2,000p as well

Deutsche Bank and JPMorgan Cazenove were the latest brokers to initiate coverage on luxury carmaker Aston Martin Lagonda Global Holdings PLC (LON:AML), a day after the firm posted its maiden results as a listed company.

The German bank started Aston Martin with a ‘buy’ rating and a 2,000p price target, pointing out that the luxury icon with a 105-year heritage, amplified by its association with the James Bond franchise, has a global reach.

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

In a note to clients, Deutsche Bank’s analysts pointed out that Aston Martin “caters to a very exclusive, underpenetrated customer group that is more resilient to economic cycles and much less price sensitive than the average car buyer.”

Meanwhile, JPMorgan’s analysts started the carmaker with an ‘overweight rating’ and a price target of 2,000p as well.

In morning trading on Friday, Aston Martin shares were 0.2% higher at 1,508p, remaining stuck below the 1,900p offer price it floated at back in October.

The stock was steadier, however, following a post-results drop on Thursday when a decline in average sale prices weighed against strong growth in third-quarter earnings as its volumes doubled.

READ: Aston Martin shares reverse as sales price declines cloud strong growth in third-quarter earnings, volumes

The company saw its third-quarter adjusted underlying earnings (EBITDA) jump by 93% year-on-year to £54mln, with its EBITDA in the year-to-date up 32% to £160.3mln.

Aston Martin added that total wholesale unit sales of 1,776 were almost double the 891 shifted in the same quarter of 2017, primarily driven by growth in the Americas and the Asia Pacific, including China.

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

Quick facts: Aston Martin Lagonda Global Holdings PLC

Price: £4.59

Market: LSE
Market Cap: £1.05 billion
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