Aston Martin share price rally receives a Formula 1 boost
Aston Martin (LON: AML) share price continued its strong comeback after the company published strong financial results. The cherry on top for the beleaguered company is the strong performance by Fernando Alonso and Lance Stroll at the Bahrain GP during the weekend. It rose to 247p, the highest point since June last year having jumped by 175% from its 2022 lows.
Formula 1 success
Aston Martin was the best-performing team at the maiden Formula 1 event of the year. Fernando Alonso came in at number 3 while Lance Stroll, who recently went through surgery, came in at position 6. Alonso defeated Lewis Hamilton while Stroll outperformed George Russell.
This was a remarkable performance for a team that came in at position 7 in 2022 with 55 points. It goes to show that the team is working well despite having significant challenges to regain its lost glory. Some analysts believe that the team has a chance to compete strongly against Ferrari and Mercedes.
Aston Martin’s Formula 1 team is a separate entity from the company. It is owned by Lawrence Stroll who is also the biggest shareholder in Aston Martin Lagonda.In its results, the firm said that over 60% of customers were new to the brand and that the F1 partnership had amplified the brand. Still, the team’s success points to the fact that Stroll’s actions are having an impact.
Meanwhile, the company published strong results last week. Its total revenue for the year came in at £1.38 billion, up from the £1.09 billion it made a year earlier. Despite the production challenges, the company managed to increase its wholesale shipments to 6,412. It expects to sell 7,000 cars his year. however, as was widely expected, its losses grew by 59% to £117 million.
Aston Martin share price performance is likely because analysts expect it to be a good turnaround story this year. For one, there is still elevated demand for its high-end vehicles. And the successful performance at the Formula 1 could lead to more demand. Also, the company is in a better financial position than it was a year earlier.
Aston Martin share price forecast
AML stock chart by TradingView
My last AML stock price outlook did not work out well. The report, which you can read here, cited the rising wedge pattern as a major market risk. The stock has continued rising in the past few days. It has managed to move above the 200-day moving average and the key resistance point at 214p, the highest point in September 2022.
The Relative Strength Index (RSI) has moved to the overbought level. Therefore, the shares will likely retest the support at 214p and then continue its resurgence. If this happens, the Aston Martin share price could rise to 300p.
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