This iconic FTSE 250 firm could recover and soar like Rolls-Royce

Aston Martin (LSE:AML) stock slumped on Wednesday (1 May) after the FTSE 250 company revealed a larger-than-expected loss during Q1. The luxury car manufacturer’s really down in the dumps. The stock’s at an all-time low, debt’s high, and revenues aren’t picking up. But could a Rolls-Royce-esque recovery be on the cards? The blue-chip FTSE 100 stock has surged more than 500% from its pandemic-era low. Aston Martin was supposed to be on the road to recovery, but its Q1 earnings surprised investors for all the wrong reasons. Revenue declined 10% to £267.7m versus the first quarter of 2023. Meanwhile, and perhaps most concerningly, net debt rose by 20% to £1.04bn. The company put the falling revenues down to a decision to halt production of existing models before it ramps up production of a new line-up later in the year. Wholesale volumes dropped 26% in the first quarter to 945. With the company’s near-term goal to deliver 7,000, that figure of 945 a quarter isn’t the required run rate. Aston Martin said that Q2 would be much the same as Q1. However, it noted that deliveries and revenue would be weighted towards the second half of the year. Executive chairman Lawrence...

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