Analyst George Galliers of Goldman Sachs maintained a Hold rating on Aston Martin Lagonda Global Holdings plc (AML – Research Report), with a price target of p150.00.
George Galliers has given his Hold rating due to a combination of factors affecting Aston Martin Lagonda Global Holdings plc. The company reported a slight miss in adjusted EBITDA for the fourth quarter, attributed to a lower gross margin and weaker than expected average selling prices on core models. This resulted in softer revenues and a step down in gross margin, influenced by a mix of fewer special editions and more Vantage deliveries, alongside foreign exchange headwinds.
Furthermore, while the company managed a slightly better than expected free cash flow due to working capital developments, the overall financial outlook raises concerns. The guidance for 2025 suggests a focus on adjusted EBIT, with expectations of positive results, but the implied EBITDA guidance falls short of previous targets. This, combined with questions around demand for new models and the need for significant earnings improvement to achieve free cash flow breakeven, contributes to the Hold rating as investors seek clarity on these issues.
In another report released on February 19, J.P. Morgan also reiterated a Hold rating on the stock with a p160.00 price target.