ACV Auctions slide to record low after lowering forecasts

ACV Auctions

06/11/2025 15:27

** Shares of wholesale vehicle marketplace ACV Auctions ACVA.N tank 35% to record low of $5.3

** Co lowers FY rev forecast, takes a $19 mln loss from bankrupt subprime auto lender and used car retailer Tricolor

** Shares are on track for its biggest one-day loss on record, bringing YTD declines to over 75%

** Brokerage BofA Global Research double downgrades ACVA to "underperform" from "buy", trims PT to $6 from $16.5

** BofA says ACVA's outlook for Q4 growth and margins and a choppy macro backdrop is a downshift from prior expectations

** "We don't have liquidity concerns, but expect multiple compression to create a steady overhang until the auto sector inflects positively" - brokerage adds

** J.P.Morgan maintains "overweight", cuts PT to $11 from $18, says co's report on volumes and market share were reassuring, although it is coming at the expense of margins

** At least two other brokerage lower price targets on stock

** 11 of 14 brokerages rate the stock "buy" or higher, two "hold" and one "sell" or lower; their median PT is $15.35 - LSEG compiled data

 (Reporting by Johann M Cherian in Bengaluru)

 ((johann.mcherian@thomsonreuters.com;))