Analyst firm Jefferies left Aston Martin with a “Buy” rating and a price target of 420 cents based on third-quarter data.
Volume sold and sales were slightly below consensus estimates, wrote analyst Philippe Houchois in an earlier response on Wednesday. The average sales price of luxury cars fell by three percent for the year. Gross profit, however, exceeded expectations.
Aston Martin reduce sales targets
British luxury car maker Aston Martin Lagonda is having problems with key parts of its new sports car and the promising DB12. Throughout the year, Mercedes-Benz’s participation is expected to reach a total of 6,700 products, as Aston Martin announced on Wednesday at Gaydon. To date, management has planned nearly 7,000 sales.
Supply chain problems hampered production of the new DB12 car model in the third quarter. In addition, sales in China’s key auto market have fallen sharply so far this year. Shares in Aston Martin were flat on Wednesday after being cut to a volume target. Shares in the sports car maker fell 10.28 percent to 1.96 pounds in London. At its peak, it fell nearly 16 percent to 183.50 cents — its lowest level in nearly nine months. However, in the year to date there has recently been an increase of 23 percent.
Aston Martin has been struggling for a long time and has had to rely on financial injections several times in recent years. The production problems surrounding the DB12 have now been resolved, it said. There is a weak market situation in China, the manufacturer explained about the decline in sales in the People’s Republic. In the third quarter, the operating loss of 48.4 million British pounds (down from EUR 55.5 million) was higher than analysts had previously expected. Stuttgart-based carmaker Mercedes-Benz has a more than 9 percent stake in the British.
NEW YORK/GAYDON (dpa-AFX Broker/dpa-AFX)
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