The stocks of AUTO1, Germany's largest online car dealer, slipped to last place in the small-cap index SDAX on Wednesday. They lost 6.3 percent and were trading at 5.12 euros. As a result, a large part of the recovery attempt, which started with the record low of 4.68 euros in mid-December and peaked at 6.60 euros in early January, has been lost.

Analyst Marcus Diebel from US bank JPMorgan has adjusted his forecasts for the company after discussions with AUTO1 management. He now expects a weaker year-end than previously anticipated. In particular, the sales in the Merchant segment, the platform for used car dealers, continue to be under pressure.

Diebel lowers its expectation for adjusted operating loss in 2023 to 49 million euros. This now falls at the lower end of the company's target range. In a study, the expert emphasized that AUTO1 expects an adjusted loss before interest, taxes, and depreciation, excluding special effects, of minus 39 to minus 49 million euros.

Despite negative forecasts, Diebel maintains his assessment of the stocks and continues to classify them as "neutral". Although he has lowered his target price from 6.30 to 6.20 euros, it still remains above the current price level. The recovery of AUTO1 stocks was already halted in early January by a skeptical study from the US bank Morgan Stanley.

In this it was emphasized that the company still needs to invest significantly on its way to a possible European champion in online used car trading. Analyst Pete-Veikko Kujala assumes that AUTO1 will need two to three years longer than generally assumed to align growth and profitability. Therefore, he has taken over the stock valuation with an "Underweight" rating and a target price of 4.60 euros.

However, there are also optimistic analysts, such as Alexander Zienkowicz from Alster Research. Despite a slower development of the German used car market in December, the expert remains confident and confirms his "Buy" rating, albeit with a reduced price target of 9.00 euros (previously 9.30 euros). Zienkowicz emphasizes that the market still cannot return to "normality" after the coronavirus pandemic.

Furthermore, the current uncertainties regarding inflation and interest rates are causing concerns for the year 2024. However, he remains confident that AUTO1 will continue to improve its efficiency and profitability. The management has set a "conservative" goal for the year 2024.