Goldman Sachs lowers ACV Auctions stock price target to $21 on Q2 headwinds

Published 12/08/2025, 12:06
Goldman Sachs lowers ACV Auctions stock price target to $21 on Q2 headwinds

Investing.com - Goldman Sachs has lowered its price target on ACV Auctions Inc (NASDAQ:ACVA) to $21.00 from $26.00 while maintaining a Buy rating on the stock. With a market capitalization of $2.28 billion, ACV Auctions currently trades below its InvestingPro Fair Value, suggesting potential upside opportunity.

The adjustment follows ACV Auctions’ Q2 2025 earnings report, which showed revenue coming in at the lower end of the company’s guided range due to headwinds experienced in the second half of the quarter, though these challenges reportedly began to reverse in July.

Despite revenue challenges, ACV Auctions delivered adjusted EBITDA at the mid-point of its guided range, reflecting the company’s focus on cost discipline while continuing to invest in growth initiatives.

The online automotive marketplace provided third-quarter 2025 guidance below Street expectations and adjusted its full-year 2025 outlook to account for the operating headwinds it faces.

Goldman Sachs noted positive developments across ACV’s platform initiatives, including AI implementation, growth in its ClearCar service to over 1,600 active rooftops, 50% year-over-year bookings growth for ACV MAX, and over 60% revenue growth in its Capital business.

In other recent news, ACV Auctions Inc reported its second-quarter earnings for 2025, revealing a significant revenue growth of 21% year-over-year, reaching $194 million. However, despite this strong revenue performance, the company’s earnings per share (EPS) did not meet analysts’ forecasts. This shortfall in EPS was a notable aspect of the earnings report. The discrepancy between revenue growth and EPS performance may interest investors analyzing the company’s financial health. Analysts and investors often look for alignment between revenue growth and EPS to assess overall company performance. These developments are essential for stakeholders considering the company’s future prospects. The recent earnings report provides a glimpse into ACV Auctions’ current financial situation.

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