Chris Pierce, an analyst from Needham, reiterated the Buy rating on Carvana Co. The associated price target remains the same with $500.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Carvana Co’s resilience and potential for growth despite current market concerns. He acknowledges that fears surrounding subprime auto loan performance have been exaggerated, impacting perceptions of Carvana’s financial health and growth prospects. However, these concerns are already accounted for in his model, suggesting that the negative effects on Carvana’s Other Gross Profit per Unit (GPU) are temporary.
Additionally, Chris Pierce believes that long-term investors are likely to look beyond these short-term impacts, as the current consensus on unit growth estimates appears conservative. This conservative outlook reduces the risk of negative revisions, supporting a stable growth trajectory for Carvana. He emphasizes that Carvana’s robust and profitable growth profile justifies a premium valuation, which is reflected in the $500 price target, representing a multiple of 35 times the estimated adjusted EBITDA for 2027.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $402.00 price target.