ACV Auctions (ACVA) Stock Forecast & Price Target

ACV Auctions Inc. demonstrates a strong positive outlook due to its leadership position in the wholesale vehicle auction market, as reflected in a significant 50% year-over-year growth in ACV Max year-to-date bookings and a notable increase in ACVGuaranteed's unit contributions. The anticipated growth in off-lease supply and the expected shift in dealer behavior favoring auction transactions set a solid foundation for enhanced revenue and operational leverage, benefiting from increased vehicle liquidity and a denser network. Furthermore, ACV's ongoing share gains within both the dealer market and the commercial wholesale market suggest a sustainable trajectory towards achieving medium-term financial targets of $1.3 billion in revenue and $325 million in EBITDA.

ACV Auctions has experienced a decline in conversion rates by approximately 500 basis points due to a drop in demand as dealers postponed inventory sales in June, which negatively impacted marketplace unit growth. The company's revenue and EBITDA for 2Q25 fell short of consensus expectations by $1.9 million and $0.2 million, respectively, prompting a downward adjustment in revenue guidance and growth assumptions. Furthermore, the anticipated macroeconomic recovery for 2025 has been downgraded, leading to concerns about the prolonged weakness in the wholesale vehicle market, thereby negatively influencing the company's near-term outlook.