Aston Martin Lagonda PLC (AML.L): Visible improvement but still-tough financials, TP lowered to 40p, Neutral/High Risk

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Aston Martin Lagonda PLC (AML.L): Visible improvement but still-tough financials, TP lowered to 40p, Neutral/High Risk

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03 Aug 2026 00:01:01 ET │ 13 pages

Aston Martin Lagonda PLC (AML.L)

Visible improvement but still-tough financials, TP lowered to 40p,

Neutral/High Risk

CITI'S TAKE Neutral / High Risk

Price (31 Jul 26 12:30) £0.36 We continue to see real improvement in operational execution at AML (see

Target price £0.40↓ here, here), with more pro-active product management, more

conservative wholesale and inventory management, and cost &capex from £0.55

reductions. Longer term, as AML launches new core and special Expected share price return 11.1%

derivatives, this should also further help profitability. Whilst we are Expected dividend yield 0.0%

encouraged by the improved execution and quality of guidance, AML Expected total return 11.1%

results have historically been volatile, and even in this improved year, FCF Market Cap £366M

remains negative and net debt continues to rise. Our Neutral/High Risk

US$492M rating on AML is based on our continued concern that AML will likely

struggle to generate sustained positive FCF and pay down debt,

notwithstanding the improvement in operating results in 2Q26 and

FY26E. We lower our FY27-28E EPS by 20%/13% and our TP lowered to Harald C HendrikseAC

40p from 55p. More details below. +44-2075-0858-10

harald.hendrikse@citi.com

Target price lowered to 40p from 55p — While we slightly lift our FY26E EPS by 3% Ross MacDonald

on improved execution, we lower our FY27-28E EPS by 20%/13% on higher net +44-20-7986-7547

interest expense after the recent refinancing (here). Our TP lowered to 40p from 55p ross.macdonald@citi.com

on earnings downgrades and changes to our DCF assumptions: i) terminal growth

(+2% vs.