'Growth slowing' - Barclays cuts AUTO1 to 'equal weight'
30/01/2023 08:45
** Shares in AUTO1 Group SE AG1G.DE fall around 6% after
Barclays downgrades the German online used-car seller to "equal
weight" from "overweight", citing concerns about a material
growth slowdown in 2023
** The broker says while the group maintains a flexible
balance sheet that should see adjusted EBITDA break even in Q4
2022, it will take several quarters for growth to accelerate
** "Just making money alone (itself some way off) isn't
enough for us to be really positive on the stock – growth also
matters," it says
** Barclays models both units and gross profit for Q4 at the
low end of guidance, expecting a disappointing quarter for the
group's wholesale platform and "gross profit driver" Merchant
** It also projects stagnating growth and little increase in
inventory in the group's Autohero retail brand despite a likely
improvement in asset turnover
** AUTO1 Group currently sits second to last on German
small-cap index .SDAXI
(Reporting by Anna Mackenzie)
((Anna.mackenzie@thomsonreuters.com))