Eric Sheridan, an analyst from Goldman Sachs, maintained the Buy rating on ACV Auctions (ACVA – Research Report). The associated price target was raised to $24.00.
Eric Sheridan has given his Buy rating due to a combination of factors that suggest ACV Auctions is on a positive trajectory. Firstly, the company is making strides toward profitability, as indicated in their Q1’24 earnings report. Despite the gross merchandise value (GMV) coming in below expectations, with normalization in pricing and volume impacts from the macroeconomic environment, ACV Auctions is advancing its consumer sourcing solution through ClearCar. Additionally, management’s dedication to investing in product innovation and technology, particularly with the re-launch of ACV Max, is anticipated to bolster their go-to-market strategy and drive future growth.
Sheridan’s outlook is further supported by the long-term growth potential for ACV Auctions within their market. Key themes identified include the ongoing shift from offline to digital in dealer-to-dealer and wholesale auto sales, the fragmented nature of the market they serve, potential for territorial expansion, and continuous development of their product and service offerings. Based on these observations and updated operating estimates following management commentary, Sheridan has increased the 12-month price target for ACV Auctions to $24, up from $22, reinforcing confidence in the company’s prospects and justifying the Buy rating.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $20.00 price target.
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ACV Auctions (ACVA) Company Description:
ACV Auctions Inc is a mobile platform for wholesale car auctions. It provides a digital marketplace for wholesale vehicle transactions and data services that offers transparent and accurate vehicle information for customers.
