What happened
A solid quarterly earnings report was the fuel driving shares of secondhand auto sales specialist ACV Auctions (NASDAQ:ACVA) higher this week. Several analysts' price target raises added a bit of turbo to that drive. Ultimately ACV's share price motored ahead by more than 20% during the week, according to data compiled by S&P Global Market Intelligence.
So what
On Wednesday, ACV lifted the hood on its fourth-quarter and full-year results. The used car auctioneer suffered a slight decline in revenue on a year-over-year basis, which actually wasn't a bad showing given how weak the used vehicle market has been lately.
And although its top-line figure came in under the average analyst estimate, the company posted a narrower-than-expected GAAP net loss.
The road ahead should be fairly traffic-free. ACV guided for revenue growth in 2023 more robust than the prognosticators' consensus forecasts, and said it expects to narrow its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) losses.
Now what
That was encouraging enough to earn price target raises for the stock from several heavy-hitting researchers. Goldman Sachs's Eric Sheridan revved his price target nearly 30% higher -- he now feels ACV will hit $15.50 per share, up from $12. Sheridan maintained his buy recommendation on the shares.
Ronald Josey of financial sector powerhouse Citigroup also gave his ACV price target some gas. His new level is $14 per share, up from $11 per share previously. Like Sheridan, Josey kept a buy recommendation on the company.
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