Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - Piper Sandler has reiterated an Overweight rating and $20.00 price target on ACV Auctions Inc (NASDAQ:ACVA), currently trading at $11.66, following investor meetings with company management. InvestingPro data shows analyst targets ranging from $11.50 to $27.50, with the stock appearing slightly undervalued based on Fair Value analysis.
The research firm attributed recent stock weakness to a second-quarter "miss" on growth but expressed "greater conviction" that Q2 weakness stemmed from "atypical -- and temporary -- market dynamics" including unexpected tariff impacts on dealer psychology and auction conversion rates.
Piper Sandler outlined ten reasons to buy ACVA shares, noting that conversion rates have been trending favorably in the third quarter and that off-lease supply should bottom in 2025 before rising by "a few hundred thousand units in 2026."
The firm highlighted that ACV has achieved over 30% market share in some regions compared to low single digits elsewhere, suggesting significant growth potential as the company could target becoming "the #1 wholesale player" with 4 million units per year.
Piper Sandler also identified multiple growth levers available to management, including hiring more inspectors, increasing marketing spend, raising prices that remain "$50-$75/unit below physical auctions," and potentially monetizing the company’s pricing engine "in ways not contemplated by most investors."
In other recent news, ACV Auctions reported second-quarter 2025 revenue of $193.7 million, marking a 20.6% increase year-over-year. However, this figure fell short of Street estimates by 1.2%, and the company sold 210,400 units, which was 4.1% below analyst expectations. Despite these figures, Piper Sandler reiterated its Overweight rating on ACV Auctions, maintaining a price target of $20.00. Meanwhile, Stephens adjusted its price target to $11.50, citing high expectations, while Needham lowered its target to $16.00, noting slower growth. Citizens JMP also revised its price target to $18.00, following revenue and EBITDA results that missed consensus estimates by $1.9 million and $0.2 million, respectively. Goldman Sachs reduced its price target to $21.00 due to headwinds faced in the latter half of the quarter, though it maintained a Buy rating as challenges reportedly began to reverse in July. These developments reflect varying analyst perspectives on ACV Auctions’ recent performance and future outlook.
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