ACV Auctions (ACVA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Gary Prestopino from Barrington maintained a Buy rating on the stock and has a $27.50 price target.
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Gary Prestopino has given his Buy rating due to a combination of factors, primarily driven by ACV Auctions’ strong financial performance in Q1/25. The company reported revenue of $183 million, surpassing both its guidance and market expectations, with adjusted EBITDA reaching $14 million, which was above the anticipated range. This performance was attributed to significant market share gains in the dealer wholesale business and expansion of their dealer partner network.
Moreover, ACV Auctions demonstrated robust growth in key metrics, including a 25% year-over-year increase in revenue and a 19% rise in marketplace units. The company’s strategic focus on operational efficiency led to improved margins, with a notable reduction in operating expenses as a percentage of revenue. Additionally, ACV Transport and ACV Capital achieved record performances, contributing to the overall positive outlook. These factors collectively underpin Prestopino’s confidence in ACV Auctions’ continued growth and justify the Buy rating.
In another report released on May 8, Goldman Sachs also maintained a Buy rating on the stock with a $26.00 price target.