GS ups Auto1 on strong earnings momentum, shares rise
15/01/2025 07:48
** Goldman Sachs upgrades the German online used-car
retailer Auto1 Group AG1G.DE to "buy" from "neutral", pointing
to retail unit sales at inflection point and strong earnings
momentum
** GS notes three key drivers as underappreciated by the
market: potential for further upside in unit sales growth,
opportunities to accelerate market share gains, and potential
upside to 2025/26 adjusted EBITDA forecasts
** The shares have performed strongly, but remain well below
their IPO price, indicating room for further growth, the broker
says
** Since its debut in Feb 2021 at 55.0 euros, the stock has
lost about 70.7% in value to 16.1 euros and currently trades at
early Feb 2022 levels - LSEG data
** In a "blue-sky scenario", GS sees potential for 2026
group gross profit and adjusted EBITDA of 995 mln euros ($1.02
bln) and 230 mln euros respectively, 16% and 40% above consensus
** GS sets its PT at 20.5 euros, implying a 27% upside
** Auto1 shares rise 6.5% in early Frankfurt trade, on track
for best day in over a month, and topping of the German mid-cap
index .MDAXI
($1 = 0.9710 euros)
(Reporting by Elizaveta Gladun)
((elizaveta.gladun@thomsonreuters.com))