Auto1 Shares Surge as UBS Doubles Price Target to 20.50 Euros

Auto1's stock has experienced a significant increase, rising by 3.6 percent to reach 16.50 euros. This marks a 150 percent increase for the year.

UBS analyst Jo Barnet-Lamb has revised her price target to 20.50 euros, more than doubling her previous target. This indicates potential for further growth. Other analysts from Barclays and JPMorgan have set targets of 19 euros and 18.80 euros, respectively.

Barnet-Lamb attributes the positive outlook to a resurgence in consumer activity in the European used car market and anticipated declines in interest rates. These factors are expected to boost volume growth in the near to medium term. Ongoing cost-cutting measures are also contributing to more profitable growth, with projected adjusted operating income for 2025 exceeding consensus estimates by 21 percent.

Auto1's shares have seen a remarkable recovery since hitting lows of 3.27 euros in March, gaining 43 percent in value since late November. This has rewarded investors who entered at the lows with substantial returns.

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