With iconic car maker Aston Martin Lagonda Global Holdings PLC(AML.L) now officially trading publicly, investors will now have the opportunity to purchase a piece of Aston Martin - if not able to afford one of the company's high end vehicles.
For car lovers everywhere, having one more option to buy equity and hold for the long-term should have, in theory, led to at least a short term elevation of equity levels following the company's initial public offering (IPO). Unfortunately, like many IPOs, Aston Martin's share price has languished following its release, and for good reason.
The car maker had previously reduced its expected launch range prior to going public, lowering the company's launch market capitalization to just above 4.3 billion pounds, a drop of approximately 15% from the firm's initial maximum target range.
At launch, shares dropped immediately as the market began its process of price discovery, with the company's ultimate share price now sitting at more than 23% below its IPO price (as of the time of writing).
With global car makers under significant pressure in recent years from concerns about global auto demand hitting its peak, to concerns about the environment and the threat of a fast growing electric vehicle market, companies like Aston Martin will need to continue to reinvent itself to remain relevant and continue to grow in the long-term.
In terms of brand value, few auto manufacturers come close to Aston Martin - that being said, I would take stock of the company's quarterly earnings reports (at least two or three of them) first, before jumping into this name, to see what the trajectory looks like first.
Invest wisely. my friends.
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