Our $17 TP is based on ~20x our 2026E EBITDA of $141 million (~15% margin). 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.