Aston Martin on verge of an investment story that could appeal to market players
Good order numbers in 2017 of Aston Martin’s DB11 sportscar will foster confidence that other models will sell
London — The lights are amber for Aston Martin to go public — but not yet at a valuation resembling Ferrari’s. The British luxury car maker and its Italian and Kuwaiti owners may consider a flotation in 2018, Bloomberg News reports. They certainly should. After years of trouble, Aston Martin is on the verge of having an investment story that could appeal to stock market investors. The company is two years into a strategy to introduce a host of new models by 2021. The 2016 results contained a raft of write-downs as it cleaned up the balance sheet, pushing it to a pretax loss. With next year’s numbers, the car maker should be able to show a decent record of recent revenue and growth in earnings before interest, tax, depreciation and amortisation. Meanwhile, Ferrari has fared brilliantly since its initial public offering (IPO), outperforming European stocks. The market has warmed to the idea that Ferrari has more in common with handbag-maker Hermes International than Volkswagen and sho...
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