J.P. Morgan Analyst Maintains Buy Rating on ACV Auctions with $18 Price Target

J.P. Morgan analyst Rajat Gupta CFA maintained a Buy rating on ACV Auctions with a $18.00 price target. The company reported a Q1 revenue of $193.7 million and a GAAP net loss of $7.3 million. Insider sentiment is negative, with 143 insiders selling shares over the past quarter. The analyst consensus rating is Strong Buy with a $17.64 average price target, representing a 50.64% upside.

ACV Auctions (ACVA) reported its fiscal 2025 Q2 earnings on August 11, 2025, showcasing a 20.6% year-over-year increase in revenue to $193.7 million. Despite the growth, the company continued to post net losses, narrowing its net loss by 57.2% to $7.3 million compared to the prior year [1]. The company's stock price experienced a decline of 19.2% month-to-date post-earnings [1].

Revenue growth was driven by marketplace and service revenue, which accounted for $176 million of the total revenue, while the customer assurance segment contributed $17.71 million [1]. The company's adjusted EBITDA guidance remains at $68 million–$72 million, representing a 150% year-over-year growth at the midpoint [1].

CEO George Chamoun highlighted AI-driven innovation and margin expansion as key growth drivers, noting the company's commitment to leveraging AI to enhance competitiveness and expand the total addressable market [1]. The company's 2025 revenue guidance was revised downward to $765 million–$775 million, reflecting a 20%–22% year-over-year growth rate, citing macroeconomic headwinds [1]. For Q3 2025, ACV Auctions expects revenue of $198 million–$203 million, with adjusted EBITDA in the range of $18 million–$20 million [1].

J.P. Morgan analyst Rajat Gupta CFA maintained a Buy rating on ACV Auctions with a $18.00 price target, despite insider sentiment being negative, with 143 insiders selling shares over the past quarter. The analyst consensus rating is Strong Buy with a $17.64 average price target, representing a 50.64% upside [2].

References:
[1] https://www.ainvest.com/news/acv-auctions-2025-q2-earnings-narrowed-losses-20-6-revenue-growth-2508/
[2] https://finance.yahoo.com/news/acv-auctions-nyse-acva-reports-201844901.html