€11.03 - That's What Analysts Think AUTO1 Group SE (ETR:AG1) Is Worth After These Results

Shareholders of AUTO1 Group SE (ETR:AG1) will be pleased this week, given that the stock price is up 16% to €10.00 following its latest quarterly results. The results were positive, with revenue coming in at €1.6b, beating analyst expectations by 6.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for AUTO1 Group

Taking into account the latest results, the current consensus from AUTO1 Group's eleven analysts is for revenues of €6.56b in 2025. This would reflect a notable 11% increase on its revenue over the past 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.

Additionally, the consensus price target for AUTO1 Group rose 11% to €11.03, showing a clear increase in optimism from the the analysts involved. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values AUTO1 Group at €14.00 per share, while the most bearish prices it at €8.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the 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. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% annually. Even after the forecast slowdown in growth, it seems obvious that AUTO1 Group is also expected to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

We have estimates for AUTO1 Group from its eleven analysts out to 2026, and you can see them free on our platform here.

It might also be worth considering whether AUTO1 Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.