Aston Martin Bookrunner Says Time to Sell After Stock Slumps 77%
- Bank becomes first of four underwriters to rate carmaker sell
- Predicts downgrade to 2019 guidance, capital increase in 2021
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Bank of America Merrill Lynch downgraded Aston Martin Lagonda to underperform, becoming the first of the bookrunners in the company’s initial public offering to recommend selling the shares.
The luxury British carmaker may need to cut 2019 margin guidance again due to weak near-term demand, analysts including Kai Mueller wrote in a note to clients, slashing their price target 27% to 400 pence a share. The stock fell as much as 8% to 437.1 pence apiece on Monday. They went public last year at 1,900 pence.