Analyst Curtis Nagle from Bank of America Securities reiterated a Buy rating on ACV Auctions and decreased the price target to $16.50 from $20.00.
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Curtis Nagle has given his Buy rating due to a combination of factors that highlight ACV Auctions’ potential for growth despite some recent challenges. The company’s revenue and EBITDA growth, although slightly below expectations, still demonstrate a strong year-over-year increase. This growth is supported by improvements in marketplace services and a notable expansion in EBITDA margin, indicating operational efficiency.
Furthermore, even though the revenue guidance was slightly lowered, the expected growth rate remains significantly higher than the industry average, suggesting that ACV Auctions is gaining market share. The company’s ability to maintain elevated retention rates and improve conversion rates also supports a positive outlook. Despite the adjustments in revenue and EBITDA estimates, the overall financial health and strategic positioning of ACV Auctions justify the Buy rating, with a price objective set at $16.50.
Nagle covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, RH, and Etsy. According to TipRanks, Nagle has an average return of -4.4% and a 46.44% success rate on recommended stocks.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $18.00 price target.