Last week, you might have seen that AUTO1 Group SE (ETR:AG1) released its third-quarter result to the market. The early response was not positive, with shares down 4.9% to €17.45 in the past week. Revenues were €2.3b, with AUTO1 Group reporting some 3.7% below analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the twelve analysts covering AUTO1 Group are now predicting revenues of €11.2b in 2027. If met, this would reflect a major 20% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €11.4b and earnings per share (EPS) of €0.91 in 2027. 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.
See our latest analysis for AUTO1 Group
There's been no real change to the consensus price target of €30.33, with AUTO1 Group seemingly executing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on AUTO1 Group, with the most bullish analyst valuing it at €39.00 and the most bearish at €22.40 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await AUTO1 Group shareholders.
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 clear from the latest estimates that AUTO1 Group's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AUTO1 Group 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
At least one of AUTO1 Group's twelve analysts has provided estimates out to 2028, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for AUTO1 Group that you should be aware of.
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