Why AUTO1 Group (XTRA:AG1) Is Up 13.1% After Expanding Its €1.6 Billion Securitisation Program

• Earlier this month, AUTO1 Group SE announced it had upsized and extended its inventory asset-backed securitisation programme, increasing total used-car inventory financing capacity by 45% to €1.60 billion, including up to €1.30 billion in senior notes from its bank group and up to €300 million in junior notes it will fund itself, with the revolving period now running until November 2027.
• This larger, longer-dated funding pool could be important for supporting AUTO1 Group’s pan-European growth ambitions by allowing the company to hold and rotate more used-car inventory without tying up additional cash.
• We’ll now examine how this expanded €1.60 billion securitisation capacity may influence AUTO1 Group’s investment narrative and long-term growth thesis.

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AUTO1 Group Investment Narrative Recap

To own AUTO1 Group, you need to believe in its ability to scale a capital intensive, pan European used car platform while protecting margins through efficient inventory turnover. The expanded €1.60 billion securitisation matters here, as it can ease near term funding pressure around stocking more vehicles, but it does not remove execution risks such as seasonality, higher Autohero investment and the potential for weaker quarters after a strong Q1.

The recent guidance upgrade for 2025 unit volumes to 772,000 to 817,000 sits neatly beside this larger ABS facility, since more inventory capacity is a practical enabler of higher throughput. For investors watching catalysts, the pairing of higher volume ambitions with extended financing to November 2027 draws attention to how well AUTO1 can balance growth, operating costs and the risk of merchant loan defaults as the model scales.

Yet, against this growth backdrop, the merchant financing book and its 2% to 3% default rate remain a risk investors should be aware of as...

Read the full narrative on AUTO1 Group (it's free!)

AUTO1 Group's narrative projects €10.0 billion revenue and €213.2 million earnings by 2028.

Uncover how AUTO1 Group's forecasts yield a €29.24 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span from about €20 to over €15,700, showing just how far apart individual models can be. Set against this, the recent upsized €1.60 billion inventory securitisation underlines how central balance sheet capacity and execution on higher unit volumes could be for AUTO1 Group’s future performance, so it is worth comparing several of these viewpoints before making up your mind.

Explore 7 other fair value estimates on AUTO1 Group - why the stock might be a potential multi-bagger!

Build Your Own AUTO1 Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AUTO1 Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free AUTO1 Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AUTO1 Group's overall financial health at a glance.

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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.

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