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Investing.com - Piper Sandler has reiterated its Overweight rating and $20.00 price target on ACV Auctions Inc (NASDAQ:ACVA) stock amid recent market hesitation following the company’s second-quarter results. According to InvestingPro data, the company’s revenue grew by 30% in the last twelve months, though it remains unprofitable with a -$42.3 million EBITDA.
The research firm noted that while recent data points are trending favorably for the online automotive marketplace, investors appear concerned about the company’s revenue growth rate in the second quarter. InvestingPro analysis shows the stock has fallen nearly 40% over the past six months, with technical indicators suggesting oversold conditions.
Piper Sandler indicated it would be buying the recent sell-off in ACVA shares but acknowledged investor hesitation centered on whether ACV Auctions can return to its historical pace of outperformance versus the broader auction market.
The firm highlighted positive signs in the used car market, which reportedly accelerated in July, and predicted that strong car demand will boost conversion rates and drive higher growth in the second half of the year.
Piper Sandler also expressed the view that competitive threats to ACV Auctions do not warrant significant concern, maintaining its $20 price target for the stock. The company maintains strong financial health with a current ratio of 1.59 and more cash than debt on its balance sheet. Get deeper insights and 12 additional exclusive ProTips with InvestingPro.
In other recent news, ACV Auctions reported its second-quarter earnings for 2025, with revenue reaching $194 million, marking a 21% increase year-over-year. Despite this growth, the company’s earnings per share fell short of forecasts. Analysts have responded to these results by adjusting their price targets for ACV Auctions. Stephens lowered its price target to $11.50 while maintaining an Equal Weight rating, citing high expectations. Needham reduced its target to $16.00, maintaining a Buy rating, and revised its growth expectations for the company. Citizens JMP also adjusted its price target to $18.00, noting that revenue and EBITDA missed consensus estimates. Goldman Sachs decreased its price target to $21.00, attributing the change to headwinds experienced in the second quarter. These developments highlight the varied analyst responses to ACV Auctions’ recent financial performance.
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