Bank of America Securities analyst Curtis Nagle reiterated a Buy rating on ACV Auctions (ACVA – Research Report) today and set a price target of $20.00.
Curtis Nagle has given his Buy rating due to a combination of factors, including the anticipation of increased demand driven by tariffs, which could potentially lead to higher sales for ACV Auctions. Conversations with car dealer groups indicate strong demand in the first quarter, particularly in March, as consumers rushed to purchase vehicles ahead of expected tariff implementations. This demand surge is expected to benefit ACV Auctions, as reflected in the company’s revenue and EBITDA forecasts, which are higher than the Street’s estimates.
Additionally, data from Cox Automotive suggests that retail used vehicle volumes grew significantly, indicating a less severe deceleration than what the Street anticipated for ACV Auctions. The correlation between retail used vehicle volumes and ACV unit growth suggests potential upside to the Street’s forecasts. Furthermore, the potential pricing tailwinds from tariffs and ACV Auctions’ significant share gains from offline competitors support the company’s growth prospects, leading to the Buy rating with a price objective of $20.
In another report released on April 14, JMP Securities also reiterated a Buy rating on the stock with a $18.00 price target.