ACV Auctions stock price target lowered to $18 at Citizens JMP

Investing.com - Citizens JMP analyst lowered the price target on ACV Auctions Inc (NASDAQ:ACVA) to $18.00 from $20.00 while maintaining a Market Outperform rating. The stock, currently trading at $13.35, has declined 38% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued.

The adjustment follows ACV Auctions’ second-quarter 2025 results, which showed revenue and EBITDA falling short of consensus estimates by $1.9 million and $0.2 million respectively.

The company attributed the underperformance to a soft June in the wholesale market, with dealers holding back units, resulting in a 500 basis point conversion miss compared to expectations, though July reportedly showed a rebound.

ACV Auctions has revised its macroeconomic outlook for 2025, now projecting conditions to range from down year-over-year to flat, compared to its previous expectation of flat performance, leading the company to reduce the high end of its 2025 guidance by $10 million.

Despite these challenges, Citizens JMP maintains its Market Outperform rating, citing ACV’s technological differentiation and upcoming improvements including Viper testing, Lift 2.0 planned for next year, and better AI integration in buying and selling tools, which the firm believes will widen the customer experience gap between ACV and physical auctions. InvestingPro subscribers can access 10+ additional investment tips and a comprehensive analysis of ACV Auctions’ financial health, which currently rates as Fair with a score of 2.05.

In other recent news, ACV Auctions reported its second-quarter earnings for 2025, highlighting a 21% year-over-year revenue growth, reaching $194 million. Despite this positive revenue performance, the company’s earnings per share fell short of forecasts. Following these results, Goldman Sachs adjusted its price target for ACV Auctions to $21 from $26, while maintaining a Buy rating on the stock. The adjustment was attributed to headwinds experienced in the second half of the quarter, though it was noted that these challenges began to reverse in July. The revenue came in at the lower end of the company’s guided range. These developments reflect the complexities faced by ACV Auctions in navigating the current market conditions. Investors are closely monitoring how these factors will influence future performance.

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