Needham Lowers ACV Auctions (ACVA) Price Target to $14, Maintains Buy Rating

ACV Auctions Inc. (NASDAQ:ACVA) is one of billionaire Steve Cohen’s small-cap stock picks with huge upside potential. On October 7, Needham cut its price target on ACV Auctions Inc. (NASDAQ:ACVA) from $16 to $14 while reaffirming a Buy rating. The revision comes despite a surge in hiring activity, which Needham views as a bullish signal for future topline growth amid improving used auto supply and industry momentum.

Needham Lowers ACV Auctions (ACVA) Price Target to $14, Maintains Buy Rating

The firm adjusted its estimates by flattening unit growth assumptions to exclude macro recovery benefits, citing ongoing volatility in used auto unit trends. While this volatility impacts short-term results and guidance, Needham sees limited effect on long-term projections.

ACV Auctions Inc. (NASDAQ:ACVA) operates a digital wholesale marketplace that enables dealerships to buy and sell used vehicles directly with one another. The platform streamlines business-to-business transactions, connecting sellers and buyers across the automotive industry.

While we acknowledge the potential of ACVA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ACVA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.