Auto1 tops German small-cap index after positive broker commentary
05/12/2024 11:50
** Barclays upgrades Auto1 AG1G.DE to "overweight" from
"equal-weight" and more than doubles its PT to EUR 19, seeing
further room for growth despite the shares' 145% YTD rally
** It says the German online used-car seller's Retail unit
has "plenty of runway ahead" and can re-accelerate markedly from
here
** The Merchant unit also has good growth drivers for 2025,
helping to support momentum, Barclays adds
** It notes Auto1 now generates essentially positive EBITDA,
net income and FCF, all of which are scaling quickly
** While the share price has rallied, earnings are moving up
too and the stock has some P/E support, Barclays says
** The stock will be added to Germany's mid-cap index
.MDAXI from the small-cap one .SDAXI on Dec. 23
** Separately, J.P.Morgan has put Auto1 on a "Positive
Catalyst Watch", according to a local trader
** The stock is up 8.5% in early afternoon trade, at the top
of the SDAX index
(Reporting by Amir Orusov)
((Amir.orusov@thomsonreuters.com))