Morgan Stanley has upgraded Aramis Autos to Overweight from Equal-weight, citing that weak market expectations are already priced into the stock. The brokerage set a €5 price target, implying about 20% upside, though it lowered its target from €7 to reflect lower forecasts.

Aramis has seen its share price decline 47% over the past 12 months as fiscal 2026 and 2027 expectations were substantially lowered following weaker market conditions, leadership transitions in the UK and Austria, and guidance that fell short of earlier hopes. The firm now expects fiscal 2026 volumes of about 121,000 vehicles and adjusted EBITDA of €56 million, implying a 2.3% margin.

The European used car market has moved from post-pandemic volatility into a slower phase, with momentum flattening across major markets. Morgan Stanley expects near-term growth to remain subdued before returning to low single-digit percentage gains in fiscal 2027 and 2028. The bank believes consensus forecasts are now too pessimistic and expects Aramis to return to mid-single-digit volume growth in 2027 as the broader market improves and leadership changes take effect.