Update shared on 01 Nov 2025
Analysts have reduced their price target for ACV Auctions, with recent research highlighting a shift from $22 to $25 to a range of $11.50 to $18. This adjustment reflects ongoing macroeconomic uncertainty and tempered near-term growth expectations for the company.
Analyst Commentary
Recent analyst updates highlight a balanced spectrum of views regarding ACV Auctions, reflecting both optimism about long-term potential and caution around near-term execution and valuation pressures.
Bullish Takeaways- Bullish analysts remain focused on ACV Auctions' industry share gains and expanding technology leadership. This supports a positive long-term outlook.
- There is confidence that ACV can resume 20% plus growth by 2026, with 2026 seen as a potentially pivotal year for the company’s financial performance.
- Resilience against AI risk and an anticipated continuation of peer-leading EBITDA growth keep ACV on the radar for investors seeking robust business models.
- Despite modestly reduced revenue forecasts, analysts maintain a belief in ACV's potential to capture significant share from the wholesale dealer market.
- Bearish analysts see elevated macroeconomic uncertainty and tougher year-over-year comparisons through the remainder of the year. This could temper expectations for a quick recovery.
- Concerns remain regarding a flatter near-term growth trajectory, as Q2 softness and conservative revenue guidance raise questions about the pace of share gains.
- Some experts note that high valuation multiples may be difficult to justify given uncertainty around near-term unit growth and execution risks.
- Recent quarterly results and softer dealer activity have driven downward adjustments to price targets, highlighting near-term pressures on ACV's performance.
What's in the News
- ACV Auctions Inc. issued new financial guidance for Q3 2025, projecting total revenue between $198 million and $203 million, representing 16% to 18% growth year over year. The company anticipates a GAAP net loss of $13 million to $11 million (Key Developments).
- The company expects full-year 2025 revenue to reach $765 million to $775 million, an increase of 20% to 22% from the previous year. ACV Auctions projects a GAAP net loss between $51 million and $47 million for the year (Key Developments).
Valuation Changes
- Fair Value Estimate has remained unchanged at $18.65 per share.
- Discount Rate has decreased slightly from 7.16% to 7.12%.
- Revenue Growth expectations remain steady at 19.58% annually.
- Net Profit Margin projection is unchanged and remains at 5.91%.
- Future P/E ratio has decreased marginally from 59.70x to 59.64x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.