ACV Auctions Inc. (NYSE:ACVA) Just Reported, And Analysts Assigned A US$19.73 Price Target

It's been a sad week for ACV Auctions Inc. (NYSE:ACVA), who've watched their investment drop 19% to US$11.57 in the week since the company reported its quarterly result. Revenues of US$194m arrived in line with expectations, although statutory losses per share were US$0.04, an impressive 34% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from ACV Auctions' 14 analysts is for revenues of US$769.0m in 2025. This reflects a meaningful 8.7% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 27% to US$0.27. Before this earnings announcement, the analysts had been modelling revenues of US$774.8m and losses of US$0.28 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

View our latest analysis for ACV Auctions

The consensus price target fell 13% to US$19.73despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ACV Auctions analyst has a price target of US$27.50 per share, while the most pessimistic values it at US$11.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 20% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. So although ACV Auctions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of ACV Auctions' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on ACV Auctions. Long-term earnings power is much more important than next year's profits. We have forecasts for ACV Auctions going out to 2027, and you can see them free on our platform here.

You can also see our analysis of ACV Auctions' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.