Barrington analyst Gary Prestopino has maintained their bullish stance on ACVA stock, giving a Buy rating on May 9.
Gary Prestopino has given his Buy rating due to a combination of factors including ACV Auctions’ robust financial performance and promising market position. In the first quarter of 2024, ACV Auctions exceeded expectations by generating revenue of $146 million and an adjusted EBITDA of $4 million, topping both the company’s guidance and analyst estimates. This performance marks a significant year-over-year revenue growth of 22% and the first instance of positive adjusted EBITDA since the company went public. Moreover, there was an impressive 800 basis point improvement in adjusted EBITDA margin from the prior year, alongside early success of their new consumer sourcing solution, ClearCar.
Further strengthening the case for a Buy rating, ACV Auctions demonstrated resilience in a tough market by increasing its market share with a 15% unit volume increase despite a general downturn in gross merchandise value (GMV) per unit. Additionally, key revenue segments such as Auction & Assurance and Marketplace services witnessed substantial growth, with the latter benefiting from standout performances by ACV Transport and ACV Capital. The company also improved operational efficiency through the use of AI-optimized pricing in its transportation services and experienced significant revenue margin expansion. These results reflect ACV Auctions’ potential for sustained growth and its ability to adapt and thrive in challenging market conditions.
According to TipRanks, Prestopino is a top 100 analyst with an average return of 27.6% and a 58.62% success rate. Prestopino covers the Consumer Cyclical sector, focusing on stocks such as LKQ, Commercial Vehicle Group, and Dorman Products.
In another report released on May 9, Goldman Sachs also maintained a Buy rating on the stock with a $24.00 price target.
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ACV Auctions (ACVA) Company Description:
ACV Auctions Inc is a mobile platform for wholesale car auctions. It provides a digital marketplace for wholesale vehicle transactions and data services that offers transparent and accurate vehicle information for customers.
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