ACVA - ACV Auctions: Positive On EBITDA Beat And Above-Expectations Revenue Guidance (Rating Upgrade)

2024-02-24 09:16:20 ET

Summary

• ACV Auctions' actual EBITDA loss for the recent quarter was narrower than both its management guidance and the consensus estimate.
• ACVA expects its top line to expand by +28.5% to $617.5 million in 2024, which is +7% better than the sell side's consensus forecast.
• I change my rating for ACVA from a Hold to a Buy, after assessing its recent quarterly performance and its financial prospects.

Elevator Pitch

I rate ACV Auctions Inc. (ACVA) stock as a Buy.

In my previous September 12, 2023, write-up , my focus was on ACVA's growing market share, the stock's valuations as compared to peers, and the change in consensus estimates for the company. I touch on ACV Auctions' Q4 2023 results and fiscal 2024 guidance in this latest article....

For further details see: