ACV Auctions (ACVA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Graham from Canaccord Genuity maintained a Buy rating on the stock and has a $24.00 price target.
Michael Graham has given his Buy rating due to a combination of factors including ACV Auctions’ solid performance in the first quarter and the company’s ability to deliver revenue and adjusted EBITDA that surpassed the upper end of the guidance ranges. Notably, despite a slight year-over-year decrease in Marketplace Gross Merchandise Value (GMV), which was largely due to a normalization in wholesale prices, the company still experienced growth in units sold. The strong performance of ACV Transport and ACV Capital, as well as the early market adoption of ClearCar, contributed to Graham’s positive outlook on the company’s stock.
Additionally, Graham’s confidence is bolstered by the company’s maintained full-year outlook, which indicates an expectation of improved wholesale volumes towards the second half of 2024. The company’s revenue growth is expected to outpace non-GAAP Operating Expenses growth by approximately 10 percentage points, suggesting continued cost discipline and operating leverage. These factors, combined with a reasonable valuation multiple of about 5 times the projected 2024 revenue, underpin the Buy rating and present ACV Auctions as an attractive investment opportunity.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $20.00 price target.
ACVA’s price has also changed moderately for the past six months – from $14.180 to $17.320, which is a 22.14% increase.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
