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Investing.com - JMP Securities has reiterated its Market Outperform rating for ACV Auctions Inc (NASDAQ:ACVA), maintaining a $20.00 price target for the online automotive marketplace, which currently trades at $16.48 with a market capitalization of $2.8 billion. According to InvestingPro data, the stock is currently trading near its Fair Value.
The firm describes the current automotive market as "relatively stable," though it notes some demand may have been pulled forward earlier in the year following auto tariff announcements, while high interest rates continue to impact vehicle affordability.
Despite these broader industry challenges that have persisted since the beginning of the COVID pandemic, JMP believes ACV Auctions has company-specific growth drivers that can outperform the overall industry.
The analyst report highlights how ACV is "transforming the industry through technology" by reducing friction for dealers while taking market share from legacy automotive companies.
JMP Securities points to ACV’s improving scale as a key advantage that enhances services and increases margins, concluding the business has "a long runway to compound" its growth potential.
In other recent news, ACV Auctions Inc reported strong financial results for the first quarter of 2025, with revenue reaching $183 million, surpassing the forecast of $182.24 million. The company achieved a 25% year-over-year revenue increase, driven by significant growth in auction and assurance revenue, which rose by 28%. Additionally, ACV Auctions exceeded its adjusted EBITDA guidance, reporting $14 million, which reflects disciplined operational expenditures. Goldman Sachs responded to these results by raising the price target for ACV Auctions to $26, maintaining a Buy rating, and expressing confidence in the company’s strategic direction and market position.
Meanwhile, Piper Sandler adjusted its outlook on Carvana (NYSE:CVNA), raising the stock target to $340 and retaining an Overweight rating. Analysts at Piper Sandler are optimistic about Carvana’s revenue growth potential, forecasting an increase of 25%-35% despite broader economic conditions. They highlighted Carvana’s low market share as an opportunity for expansion, particularly given the company’s capacity to sell up to 3 million cars compared to the 416,000 units sold in 2024.
These recent developments reflect a positive outlook for both ACV Auctions and Carvana, with analysts from Goldman Sachs and Piper Sandler demonstrating confidence in the companies’ growth strategies and market positions.
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