Ronald Josey, an analyst from Citi, maintained the Buy rating on ACV Auctions (ACVA – Research Report). The associated price target is $22.00.
Ronald Josey has given his Buy rating due to a combination of factors that highlight ACV Auctions’ promising growth trajectory and strategic positioning in the market. The company has demonstrated significant product innovation and market share gains, particularly in its core regions and territories. ACV Auctions is on track to achieve its mid-term goals of reaching 1.5 million wholesale units, $1.4 billion in revenue, and 25% adjusted EBITDA margins within the next three to five years, despite expectations of a flat dealer wholesale market in 2025.
Moreover, ACV Auctions’ market share currently stands at 10% of the retail dealer wholesale segment, supported by a robust network of franchise and independent dealers. The company’s expanding data corpus is a critical asset, enabling the development of new product offerings and enhancing existing ones. These factors, combined with detailed mid-term guidance and a strong sales force, underpin Ronald Josey’s confidence in ACV Auctions’ ability to deliver continued market share gains and operating leverage, justifying the Buy rating and a target price of $22.
Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Zillow Group Class A. According to TipRanks, Josey has an average return of 23.7% and a 55.69% success rate on recommended stocks.
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