Our $22 TP is based on ~23x our 2026E EBITDA of $153 million (~16% margin),  a discount to its 2-year average of 55x given slower revenue growth. We justify our valuation methodology given ACV’s nationwide coverage, expanding dealer relationships, new product opportunities around ancillary services, and improving overall unit economics that we believe can lead to sustainable long-term profitability.

Key risks to shares achieving our price target include: (i) competition is ramping as incumbents increasingly focus on moving to more digital centric models; (ii) adoption rates in new territories may occur slower than expected; (iii) execution risk given the manual nature.

This stock is High Risk based upon our quantitative model, but assigning a High Risk rating is not supported by the company's continued execution. Thus, a High Risk rating has not been applied.