Analyst Gary Prestopino of Barrington maintained a Buy rating on ACV Auctions (ACVA – Research Report), retaining the price target of $27.50.
Gary Prestopino has given his Buy rating due to a combination of factors that highlight ACV Auctions’ strong market position and growth potential. The company has developed a reliable and efficient digital marketplace that allows dealers and commercial partners to accurately assess the cash value of vehicles. Since its inception, ACV has shown impressive growth, reaching $637 million in revenue and processing 743,000 units, with a significant buyer base of 21,000 dealers.
ACV’s market offers substantial growth opportunities, with a potential market size exceeding $13 billion. The company’s digital platform benefits from network effects that enhance market liquidity, supported by accurate inspections and a comprehensive vehicle database. Additionally, ACV’s continuous product expansion and strategic regional penetration have enabled it to capture a larger market share, even as the overall market for retail dealer wholesale units has declined. These factors contribute to Prestopino’s positive outlook on ACV Auctions’ stock.
In another report released yesterday, Bank of America Securities also upgraded the stock to a Buy with a $20.00 price target.
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