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Aston Martin [LON:AML] shares almost immediately went off-road following last October’s IPO. Starting at a share price of £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.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.


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