Raymond James Starts ACV Auctions Inc (ACVA) at Market Perform

Raymond James analyst Aaron Kessler initiates coverage on ACV Auctions Inc (NASDAQ: ACVA) with a Market Perform rating.

The analyst commented, "Our positive fundamental view is based on 1) Large TAM that is increasingly shifting to digital; 2) ACV has built an industry leading digital marketplace that provides numerous benefits to dealers vs. traditional physical wholesale auctions; 3) Attractive cohort economics: as territories mature and scale, territory-level economics improve materially driven by rapid growth in units as well as cost efficiencies; 4) we expect 30%+ revenue growth driven by new territory expansion, increased wallet share of existing cohorts, growth from ancillary services (e.g. transportation, financing), new products, international; 5) we expect 30%+ long-term EBITDA margins driven by increased scale efficiencies, particularly as cohorts mature. While positive on the fundamental outlook, we believe shares are fairly valued at current levels (29x EV/2022 gross profits vs. ~12x for high growth marketplace peer group)."

For an analyst ratings summary and ratings history on ACV Auctions Inc click here. For more ratings news on ACV Auctions Inc click here.

Shares of ACV Auctions Inc closed at $37.04 yesterday.

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