Goldman Sachs raises Auto1 Group stock price target to EUR35 on growth

Goldman Sachs has raised its price target for AUTO1 Group SE (AG1) to EUR35.00 from EUR32.50, maintaining a Buy rating, ahead of the company's 3Q25 results. The firm anticipates above-consensus units sold in both Merchant and Autohero segments, better-than-expected adjusted EBITDA, and a potential upward revision of 2025 guidance, citing strong trading momentum and a 38% increase in Autohero's annual production capacity to 250,000 units through new centers.

Analysis

Goldman Sachs has issued a bullish update on AUTO1 Group SE (AG1), raising its price target to EUR35.00 from EUR32.50 and maintaining a Buy rating ahead of the company's third-quarter 2025 results. The bank's positive stance is predicated on expectations of an upcoming earnings beat, forecasting above-consensus units sold in both the Merchant and Autohero segments, alongside superior adjusted EBITDA. This view is supported by high-frequency datasets indicating strong trading momentum in the Merchant business has outpaced the broader market through Q3. Consequently, Goldman Sachs anticipates a potential upward revision to AUTO1's full-year 2025 guidance. The growth outlook is further reinforced by strategic capital allocation, with recent investments in the Autohero segment expected to accelerate unit growth and a significant capacity expansion via three new production centers, which will increase annual output capabilities by 38% to approximately 250,000 units.

Key Decisions for Investors

• Investors may consider the Goldman Sachs note a strong bullish signal, with the November 5 earnings report acting as a significant near-term catalyst that could validate the positive outlook.
• The combination of strong current trading momentum and a 38% increase in planned production capacity presents a compelling fundamental growth case for the company in the European online used car market.
• It is critical to monitor the Q3 results for confirmation that increased investment is translating into accelerated unit growth in the Autohero segment and to scrutinize management's updated 2025 guidance for justification of a higher valuation.