Earnings Update: Here's Why Analysts Just Lifted Their AUTO1 Group SE (ETR:AG1) Price Target To €11.03

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It's been a pretty great week for AUTO1 Group SE (ETR:AG1) shareholders, with its shares surging 16% to €10.00 in the week since its latest third-quarter results. The results were positive, with revenue coming in at €1.6b, beating analyst expectations by 6.9%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AUTO1 Group after the latest results.

Check out our latest analysis for AUTO1 Group

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XTRA:AG1 Earnings and Revenue Growth November 16th 2024

Following the latest results, AUTO1 Group's eleven analysts are now forecasting revenues of €6.56b in 2025. This would be a decent 11% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €6.44b and earnings per share (EPS) of €0.04 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target rose 11% to €11.03, with the analysts clearly having become more optimistic about AUTO1 Group'sprospects following these results. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values AUTO1 Group at €14.00 per share, while the most bearish prices it at €8.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AUTO1 Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that AUTO1 Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. So it's pretty clear that, while AUTO1 Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.