Aston Martin shares have plummeted over 25% today, marking their biggest one-day drop in four years. Shares have erased some of the declines but despite that hit their lowest point since 2022. The luxury carmaker's stock, already trading at very low levels from the history point of view, has been hit hard by a reduction in its sales forecast.
The company warned that its EBITDA will be lower than the previous year and has abandoned its plans to report positive cash flow in the second half of the year. Third-quarter sales are also expected to miss market expectations.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appAston Martin is the latest automaker to issue a warning about a slowdown in sales. The company recently appointed a new CEO, Adrian Hallmark, who has acknowledged that previous sales targets were overly ambitious. Hallmark indicated that the company will produce around 1000 fewer cars than previously forecast this year and will not achieve its gross margin target of 40% for the year.
Analysts have not changed their 2025 outlook for Aston Martin, when the company is expected to turn a profit for the first time in several years. However, some analysts have lowered their 2024 EBITDA forecast to around £300 million, compared to the previous consensus of over £360 million.
The company may become profitable next year. Source: Bloomberg FInance LP, XTB
The stock currently has 7 buy ratings, 4 hold ratings, and 1 sell rating, with a consensus price target of 240 pence. Currently, the stock is trading about 100 pence lower than price target.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
