UBS Raises Price Target for AUTO1 Group Amid Used Car Market Stabilization

UBS upgrades AUTO1 price target, citing temporary Q1 headwinds and expecting a Q2 operational acceleration. Used car prices show modest March gains.

While AUTO1 Group shares continue to search for a floor after a challenging start to the year, the used car sector is showing initial signs of recovery in March. In a notable move, analysts at the global investment bank UBS have upgraded their outlook for the Berlin-based online automotive platform, despite acknowledging seasonal headwinds in the first quarter.

Analyst Confidence Remains Firm

UBS analyst Jo Barnet-Lamb has reaffirmed a "Buy" rating for AUTO1 Group. On Thursday, he increased the bank's price target for the equity from €29.40 to €30.50. This adjustment reflects a belief that recent business softness, attributed to cold weather and an early Easter holiday, is temporary. UBS anticipates a noticeable acceleration in operational performance during the second quarter.

Market Prices Show Modest Gains

Supporting a more stable environment, AUTO1 Group's proprietary price index rose to 139.3 points in March. This marks a 1.2% increase from the previous month. Hybrid vehicles are leading this trend, posting a year-on-year gain of 1.4%. For the first quarter overall, a moderate price increase of two percent is projected, even as the general price level remains nearly unchanged compared to the same period last year.

Share Performance and Technical Context

The market's optimism appears cautious. The stock closed at €15.78, a level that remains approximately 44% below where it started the year. From a technical perspective, the short-term picture is mixed. The Relative Strength Index (RSI) currently reads 89.0, signaling an extremely overbought condition. This suggests the potential for near-term pullbacks following the recent period of stabilization.

All Eyes on Q2 Execution

The coming months are now critical. Investors will be closely monitoring whether trading volumes indeed pivot as UBS forecasts, providing the fundamental momentum needed to bridge the gap toward the new €30.50 price target. The confirmed "Buy" recommendation underscores the analysts' confidence in the company's strategic direction, viewing current industry challenges as short-term in nature. The focus is squarely on whether operational dynamics will pick up through April and May.