(News Bulletin 247) – Oddo BHF raises its advice on the Aston Martin Lagonda (AML) share, going from ‘neutral’ to ‘outperforming’, with a price target raised from 210 to 310 pence.
The analyst relies in particular on the increase in Geely’s stake in the capital, which rose from 7 to 17% and became the third largest shareholder behind Yew Tree and PIF.
According to Oddo BHF, this operation will fuel speculation around a possible takeover of the group. ‘Such an operation would be part of Geely’s multi-brand strategy and would generate technological synergies, particularly in the electrical sector’, believes the analyst.
Furthermore, ‘the cash injection is welcome given the group’s fragile financial situation (net debt of £868m at the end of Q1) and should bring the gross cash position at the end of the year to more than 500m £, according to our scenario’, continues the broker.
These conditions should allow attention to be drawn to the favorable momentum with the arrival of new products and a CMD scheduled for 06/27, he concludes.
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