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Investing.com - Needham has reduced its price target for ACV Auctions Inc (NASDAQ:ACVA), a $2.28 billion market cap online automotive marketplace, to $16.00 from $25.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $13.35, significantly below its 52-week high of $23.46.
The price target adjustment follows ACV Auctions’ second-quarter results, which prompted Needham to revise its growth expectations for the online automotive marketplace. Despite current market challenges, InvestingPro analysis indicates strong revenue growth of 32.9% and projects continued sales expansion this year. Get access to 10+ additional exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Needham cited "macro lumpiness" and questions about a slower market share gain trajectory as factors creating elevated near-term uncertainty for the company, resulting in a flatter growth trajectory in its updated estimates.
Despite these challenges, Needham noted that ACV Auctions continues to execute on long-term strategic goals, including growing industry share and expanding its technology leadership ahead of total addressable market expansion.
The research firm highlighted that ACV has margin and operating expense levers available, as evidenced by the company maintaining the midpoint of its adjusted EBITDA guidance despite lower top-line projections, with improved unit growth prospects expected as used vehicle inventory begins to show growth in 2026.
In other recent news, ACV Auctions Inc reported its second-quarter 2025 earnings, revealing a 21% year-over-year revenue increase, reaching $194 million. Despite this revenue growth, the company’s earnings per share fell short of analyst forecasts. Following the earnings report, Citizens JMP adjusted its price target for ACV Auctions to $18 from a previous $20, while maintaining a Market Outperform rating. Similarly, Goldman Sachs lowered its price target to $21 from $26, citing headwinds in the second half of the quarter, although these challenges reportedly began to reverse in July. Both analyst firms maintained positive ratings on the stock, with Citizens JMP and Goldman Sachs keeping a Market Outperform and Buy rating, respectively. These developments highlight the mixed reactions to ACV Auctions’ financial performance and market conditions.
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