Will Aston Martin shares be last on the grid?
Trading at record lows, the luxury car maker will be praying success on the track makes up for a weak share price. Independent analyst Alistair Strang loos at the odds of a turnaround.
6th March 2025 07:46
by Alistair Strang from Trends and Targets
With arguably the best car design wizard Adrian Newey joining their team, on paper it’s certain the team should face an interesting 2025 season. There is an obvious wrinkle with their two drivers, one of whom has questionable driving ability and the other boasting a dodgy past. Unfortunately, the stock market appears to be venting its opinion before a wheel has even turned, Aston Martin Lagonda Global Holdings Ordinary Shares (LSE:AML)'s share price now resting in a place which threatens a visit to the scrap yard rather than any winners podium.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
From our perspective, the Aston Martin share price is in a dire position, its recent drop below Red on the chart exposing the shares to an extremely painful Big Picture potential. They're now trading in a zone where it’s apparently being attracted by an ultimate bottom of just 7p.
No matter which calculation we throw at Aston's price movements, this is the only consequence showing if the price wanders below 72p anytime soon. We’re far from hopeful their Formula 1 team shall provide any reason for positive emotion in the marketplace.
Of course, perhaps Aston Martin has a trick up its sleeves, giving the stock market an excuse to push the share price up above the Red uptrend since 2022. Such a movement would certainly prove significant, potentially provoking recovery to an initial 109p with our secondary, if bettered, at 131p. This would effectively dump the share price in a zone where a longer-term 158p becomes possible.
We are not hopeful.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.