Aston Martin thinks to overcome to Ferrari with exit to stock market

Aston Martin thinks to overcome to Ferrari with exit to stock market



Aston Martin points  a valuation that, according to expectation, will surpass that   its only rival that quotes in stock market, Ferrari NV. And what do analysts say? They are not so sure.




The luxury sports  car insurance maker that became famous for the James Bond movies presented details for  IPO on Thursday in London, which would value the British company at up to US $ 5.9 billion. This would exceed the multiples of Ferrari, which gets more profits and generates mountains  money.

The appraisal is a great vote of confidence, Chief Executive Andy Palmer said   an interview, noting that the company was less than one tenth  its current value when the recovery began. “From my point of view, the most important thing that we have only traveled half the way. We have renewed the current portfolio of products and  have much ahead.

The company’s first sport utility vehicle (SUV) will come out 2021 and provide access to the Chinese market and an advantage over Ferrari, which this week postponed the launch its SUV, the Purosangue, until 2022, said Palmer. Many luxury car manufacturers are beginning to manufacture SUVs to capture high profit margins and thus finance initiatives such as electrification.

Ambition

Based on your first semester benefits, Aston Martin could be priced more than 12 times your adjusted earnings before interest, taxes, depreciation and amortization (Ebitda). This calculation does not take into account Aston Martin’s debt and research and development spending, which would raise the multiple.

Ferrari operates at 21.5 times its adjusted Ebitda for 2019, based on data from Bloomberg, a figure closer luxury goods companies than to automotive companies. However, analysts are skeptical about the possibility that Aston Martin businesses can get an appraisal like Ferrari’s.

We love the brand. We respect the administration team. But we simply can not see how a multiple like Ferrari looks realistic, said Max Warburton, an analyst at Sanford C. Bernstein & Co., in a research note. They are selling a loss-making company according to GAAP accounting criteria in the United States, with a poor record of profitability and a fragile balance sheet, which sells cars at much lower prices  a much less dedicated public.

Prices

The British automaker will sell a 30 percent stake at between 18.50 pounds and 21.50 pounds per share, according to a statement. Prices will be set on October 5 and the price will start on the London Stock Exchange around October 12.

Everything will depend in large part on Aston Martin’s ability meet its ambitious medium-term goals, according to Arndt Ellinghorst, analyst at Evercore ISI. He estimates that, in the middle of the strip, the business value that Aston Martin points is about 11 times the Ebitda of 2021. The newly launched DB11 and Vantage were well received and can help stimulate significant sales growth.

This Project 003, we will see how the brand finally baptizes it and it will keep pulling Nordic mythology, it will be homologated and available for all markets and the first units will reach the market by the end of 2021. To see it there is still time, for now we will have that conform with this first sketch that leaves everything for the imagination.

According Andy Palmer, president and CEO of Aston Martin, he the perfect heir of the Valkyrie: “We always intended to make the Aston Martin Valkyrie a unique project, however, it was also vital for us that the Valkyrie created a legacy: direct descendant who would also set new standards within his own area of ​​the hyper-sports market, creating a line of highly specialized and limited production machines that can exist in parallel with Aston Martin’s serial production models.

Thus, the manufacturer of Warwickshire announces insurance that the Aston Martin 003 will have an ultralight structure, so AAA insurance  we can expect the same monocoque chassis conceived in carbon fiber of the two ‘Valkyries’. In the same way, it will also incorporate the active aerodynamic systems of its brothers, as well as its active suspension.




As for its mechanics, the Aston Martin 003 will also assemble a high-speed hybrid train, combining a central thermal engine with an electric one. It is expected that it is the 6.5-liter V12 equipped by his brothers and that its power surpasses the barrier of 1,000 hp.

The Aston Martin Valkyrie and Valkyrie AMR Pro will soon have brother. The British brand has Geico just revealed that a third hypercar: internally baptized Aston Martin 003, will share technologies with two mentioned  will be homologated for road.

Its arrival to he market already has date: 2021. All hyperport but born for the enjoyment in highway. The Aston Martin 003 aims  be the ‘least exclusive’ of this trio of high flights: 500 units will see the light against 150 Valkyrie or 25 Valkyrie AMR Pro. It will also have more mundane elements that we did not find in both previous, such as space carry luggage.

Not for that reason will it cease  a spectacular machine: Aston Martin has confirmed that Project 003 will enjoy many of the technologies present in its brothers, which were known as Project 001 and Project 002 in the allocations of its development, in addition to affirm that it will his most advanced model to date.