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On Friday, BNP Paribas (OTC:BNPQY) Exane analyst Mourad Lahmidi upgraded AUTO1 Group SE (AG1:GR) (OTC: ATOGF) stock rating from Neutral to Outperform, setting a new price target at €30.00, a substantial increase from the previous target of €19.00. The revision follows a recent conference where the firm gained insights into AUTO1 Group’s strategic shift towards its Merchant business.
Lahmidi’s commentary highlighted a change in perception regarding the company’s growth potential. "We recently hosted AG1 management at our TMT conference, where we learned more about the step change in strategy, which is fostering robust and sustainable growth within their Merchant business," said Lahmidi. The analyst acknowledged that their initial focus on the company’s retail expansion had led to an underestimation of the Merchant segment’s potential.
This reassessment has prompted BNP Paribas Exane to significantly raise their forecasts for AUTO1 Group, now placing them well above the consensus. The new price target of €30 reflects this optimistic outlook and the firm’s confidence in the sustainable growth of AUTO1 Group’s Merchant business.
AUTO1 Group, which operates in the automotive sector, is poised to benefit from the strategic changes that have caught the attention of analysts. With a more positive outlook from BNP Paribas Exane, the company’s stock may see increased investor interest as it continues to expand and refine its business operations.
Lahmidi’s endorsement suggests that AUTO1 Group’s efforts to strengthen its Merchant business are likely to pay off, potentially leading to a more favorable performance in the market. This upgrade to Outperform signifies a noteworthy shift in expectations for the company’s future trajectory.
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