JPMorgan raises Auto1 Group stock price target to EUR35 on strong GPU

Published 07/08/2025, 09:06
JPMorgan raises Auto1 Group stock price target to EUR35 on strong GPU

Investing.com - JPMorgan raised its price target on AUTO1 Group SE (ETR:AG1) (OTC:ATOGF) to EUR35.00 from EUR30.00 on Thursday, while maintaining an Overweight rating on the stock.

The upgrade follows AUTO1’s Q2 2025 results, which demonstrated strong volumes and healthy profitability improvements, confirming the company’s turnaround story is gaining momentum.

JPMorgan upgraded its 2025/2026/2027 EBITDA estimates by 1%/3%/4%, citing higher-than-anticipated contributions from financial products and increased car sales volumes, placing its forecasts 6%/10%/18% ahead of consensus expectations.

The firm’s base case assumes AUTO1 will reach a 3.7% market share in the used car transaction market by 2028, compared to 2.5% in 2024 and the company’s long-term guidance of 10%, along with a 5% EBITDA margin by 2028.

JPMorgan also outlined a blue-sky scenario of EUR60 per share, based on AUTO1 achieving a 6.5% market share and a 6% EBITDA margin, which it does not consider demanding given the company’s strong business momentum, high operational gearing, and meaningful scale benefits.

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