Aston Martin shares almost immediately went off-road following last October’s IPO. Starting at £19.05, the car-marker eventually ended 2018 at £12.45, falling afoul of the market’s wider economic fears.
Its 2019 has been no better. Having briefly crept back to £13.75, the stock was slammed following February’s full year results, and hasn’t recovered since. Aston Martin shares now sit at a current trading price of £8.47, less than half its initial public offering.
The ironic thing about Aston Martin’s post-IPO performance is that 18% plunge the company suffered on the day of its full year results was in part caused by the IPO itself. Though total wholesale volumes rose 26% to 6441, allowing revenue to rise 25% to nearly £1.1 billion, it fell to a pre-tax loss of £68 million as its stock market launch cost the firm £136 million.
Further souring the statement was news that Aston Martin would be setting aside £30 million to cover a hard Brexit – sensible, but still not what investors want to hear.
As for its 2019 guidance, wholesales are set to be between 7100 and 7300, almost a 12% increase at the mid-point but a marked slowdown on the growth managed in 2018. Adjusted EBITDA is ‘expected to be lower year-on-year in the first half’ due to the non-repeat of income related to the selling of certain intellectual property. Investors will be after signs that the firm is on track when it reports on Wednesday.
Aston Martin shares have a consensus rating of ‘Buy’ alongside an average target price of £14.77.
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