FRANKFURT (dpa-AFX) - Shares in Auto1 took a steep dive on Thursday following a downgrade by U.S. investment bank Goldman Sachs. They lost 12.6 percent to 8.145 euros, bringing up the rear in the small cap index SDax.

Although Goldman analyst Lisa Yang remains optimistic in her outlook for the European Internet and media sector despite overall economic uncertainties, she is rather skeptical about online car dealers, among others. She therefore downgraded Auto1 from "Buy" to "Neutral" and also moderately lowered the price target to 10.60 euros.

According to her, short- to medium-term consensus growth estimates are likely to be revised downward. In doing so, it pointed to continued pressure on the used car markets, which also impacted dealer business. The consumer environment is weak, she said, while marketing investment is being reduced.

Yang also noted that Auto1's stock has fallen nearly 42 percent since it was added to Goldman Sachs' "Buy" list about a year ago, while the FTSE World Europe is down only 6 percent, "reflecting the broad market rotation, out of unprofitable technology companies."/ck/ajx/jha/