What happened
A solid quarterly earnings report was the fuel driving shares of secondhand auto sales specialist ACV Auctions (ACVA +0.00%) 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.
ACVA ACV Auctions
NYSE
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.
