Deutsche Bank has revised its price target for Aston Martin Lagonda Global Holdings Plc (AML: LN) (OTC: ARGGY), reducing it to GBP1.40 from the previous GBP2.00.
The firm retained its Hold rating on the stock. The adjustment follows Aston Martin's announcement of a profit warning for the fiscal year 2024, while the company's fiscal year 2025 guidance remains unchanged.
Aston Martin plans to even out the distribution of wholesale volumes amid their portfolio renewal and upcoming launches. The luxury carmaker is also reducing its wholesale unit forecast for 2024 by approximately 1,000 units due to supply chain challenges and diminished demand in China.
Similar issues have recently led to profit warnings from automotive giants BMW (ETR:BMWG) and Mercedes, while Porsche (ETR:P911_p) has been particularly affected by supply chain disruptions.
Despite the lowered expectations for 2024, Aston Martin is sticking to its fiscal year 2025 targets. Deutsche Bank views this as an ambitious move, acknowledging that Aston Martin's entirely refreshed model lineup should support future demand and pricing.
However, the bank also notes that the overall market is showing signs of weakening, and the anticipated growth for the global market in 2025 is expected to be modest.
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