Deutsche Bank keeps a Hold on Aston Martin Lagonda and lowers its price target to 50p from 55p after the carmaker delivered a mixed first-quarter update.
Analyst Nicolai Kempf says the luxury carmaker's Valhalla ramp-up remains on track and, alongside a granted GBP50m committed facility with certain Yew Tree Consortium members, should provide short-term financial flexibility and support future cash generation.
The analyst notes a Q1 earnings beat was offset by a cash-flow miss, and flags planned additional dealer support in Q2 plus ongoing execution risks and macro uncertainty as reasons for caution.
He identifies Valhalla's ramp-up as the key near-term catalyst expected to drive improved financials and stronger cash conversion that could warrant a more constructive stance.
