Market's view on Aston Martin Lagonda

Published on April 2024

  • Aston Martin’s stock has significantly declined from its peak in 2023, despite strong vehicle demand and Bloomberg’s projection of the company becoming profitable within the year.
  • Concerns are rising due to multiple recalls including three recalls within a week and additional recalls for the DBX model.
  • There is a noticeable downward trend in the stock chart, with potential support levels identified at 120 and 145p.
  • A significant executive compensation issue has been highlighted with the CEO receiving £1.3 million for weekly commutes from Italy to the Midlands via private jet.
  • One stock watcher suggests that following analysts’ recommendations might not be beneficial as the company’s stock performs contrary to these predictions.
  • The decision to focus on hybrids rather than fully electric models is viewed positively, considering it is tax-deductible.
  • Quarter one financial results show a 51% decline compared to March 2023 and a 33.3% drop compared to the first quarter of 2023, leading to predictions of an imminent cash raise needed for refinancing.
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