Aston Martin Lagonda Global Holdings Plc’s fresh investment from China inspired analysts at one bank to reverse a three-year recommendation to clients that they sell shares of the British luxury carmaker.

Mediobanca S.p.A. double upgraded the stock to outperform from underperform on Friday, a day after news that Geely Automobile Holdings Ltd. added £234 million ($290 million) to its investment in the UK company. The broker had held its bearish view on the stock since a downgrade in February 2020, according to data compiled by Bloomberg.

A potential strategic partnership with Geely will improve Aston Martin’s penetration in China, analysts Andrea Balloni and Isacco Brambilla wrote in a note to clients. More broadly, the move improves Aston Martin’s debt outlook and increases the carmaker’s M&A appeal. “We rate this deal as very positive for Aston,” they added.

Aston Martin rallied as much as 25% on Thursday after news that Geely would double its stake, becoming the third-biggest shareholder. The Warwick, England-based company’s stock has been pressured by concerns around its balance sheet and weak sales since a high-profile initial public offering in 2018.

Mediobanca increased its price target to 360 pence a share from 200 pence, suggesting the stock could gain almost 40% from Thursday’s closing level. It has fallen about 67% since Mediobanca’s 2020 downgrade.

The shares were 1.2% higher at 263 pence as of 10:11 a.m. in London.