AUTO1 Group CMD Boosts Transparency, Analyst Lifts Price Target

AUTO1 Group’s (ETR: AG1) capital markets day has materially improved the investment case for Europe’s largest digital used-car platform, according to mwb Research, which raised its price target and maintained its Buy rating following the event.

Analyst Alexander Zienkowicz lifted his discounted cash flow-derived price target to EUR 35.00 from EUR 33.00, implying upside of approximately 38% from Wednesday’s close.

He described the CMD as primarily “a transparency event,” noting that management disclosed separate Merchant and Retail segment economics, profitability bridges and cash-flow mechanics for the first time, “materially enhancing their credibility.”

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On the Merchant side, mwb Research characterized the segment as “the cash-generating core,” with management targeting long-term gross profit per unit of EUR 1,080–1,200, up from EUR 976 in fiscal 2025, and adjusted EBITDA per unit of EUR 480–720 versus EUR 323 currently.

A key driver is said to be Merchant Financing, with financed dealers purchasing 40–60% more vehicles than non-financed customers, supporting both volume growth and incremental profitability.

Retail, centered on Autohero, remains in investment mode, but Zienkowicz said “the route to profitability” is now more tangible.

Management targets adjusted EBITDA per unit of EUR 800 or above at 300,000 annual units, compared to EUR -410 in fiscal 2025. Captive consumer finance is central to the bridge, with attachment rates seen rising to 50–60% and net interest margins of 5–7%.

mwb Research added that the enhanced disclosure “should improve investor confidence and gradually reduce the complexity discount that has historically weighed on the shares.”