In a report released today, Rajat Gupta CFA from J.P. Morgan maintained a Buy rating on Carvana Co, with a price target of $350.00.
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Rajat Gupta CFA has given his Buy rating due to a combination of factors that highlight Carvana Co’s potential for growth and profitability. The company is experiencing accelerated share gains in the used vehicle market, which is expected to support future earnings revisions. Carvana’s unit growth and EBITDA per unit expansion are significantly outpacing its largest peers, indicating a strong competitive position.
Additionally, Carvana’s balance sheet is improving, with a lower net-debt to EBITDA ratio compared to traditional retailers, which provides opportunities for strategic expansion beyond the traditional used car market. The company’s investments in infrastructure, such as the ADESA auction business, are seen as long-term advantages that are difficult for competitors to replicate. These factors, combined with the potential for multiple expansion, underpin the positive outlook and Buy rating for Carvana Co.
In another report released on July 18, Wells Fargo also maintained a Buy rating on the stock with a $390.00 price target.