Shares of German online car retailer Auto1 (ETR:AG1G) rallied on Friday following a note from JPMorgan that placed the stock on a Positive Catalyst Watch and increased the firms price target to €50 from from from
By 10:23 GMT on Friday trading in Germany, Auto1s shares had risen 4.2% following the note from JPMorgan.
The upgrade from the bank, led by Marcus Diebel, followed a detailed review of gross profit per unit (GPU) and volume levers. Based on that analysis, the analysts said they see "further growth potential," and increased their EBITDA forecasts by 10% for 2026 and 9% for 2027.
JPMorgans team said the case for Auto1 remains attractive despite the companys strong share price over the past year, pointing to better profitability in both the Merchant and Consumer divisions as supporting evidence.
Specific drivers the analysts highlighted include ongoing improvement in GPU, which they expect to be supported by sharper pricing enabled by artificial intelligence, the rollout of financing products and the expansion of ancillary revenue streams such as insurance and license plate printing.
"With the Consumer business now fit for purpose for 250k cars, management is now poised to push volumes and we see further GPU gains materializing without incremental costs, both translating into operational leverage and higher profits," the analysts wrote.
The bank placed the stock on Positive Catalyst Watch ahead of Auto1s full-year results due in late February, noting potential upside to current EBITDA expectations and anticipating a constructive trading outlook into 2026.
On the Merchant side, JPMorgan noted relatively low penetration among European car dealers and argued this leaves scope for additional efficiency gains and higher GPU beyond the companys existing guidance range.
For Autohero, the analysts said market consensus has not yet fully incorporated improvements in pricing driven by AI nor the rising contribution from financing and ancillary services.
The research note also referenced what it described as a "de-risked balance sheet," pointing out that Auto1 carries no corporate debt and holds substantial liquidity across cash, inventory and captive finance assets.
Sectors impacted: Automotive retail, financial services tied to vehicle financing and insurance, and technology applications within pricing and operations.