JPMorgan analyst Rajat Gupta downgraded ACV Auctions to Neutral from Overweight with an unchanged price target of $17. The analyst believes the stock’s valuation now gives ACV sufficient credit for a cyclical recovery in the dealer-to-dealer auction space along with the company’s ability to continue market share gains and show progress towards profitability. While ACV is positioned favorably from a cyclical standpoint, an inflection in end market volumes is unlikely, as industry experts do not anticipate a meaningful recovery in dealer-to-dealer wholesale volumes in 2023 and 2024 given a challenging used car demand backdrop and slow inventory build thus far, the analyst tells investors in a research note.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on ACVA: