William Blair analyst Sharon Zackfia has reiterated their bullish stance on CVNA stock, giving a Buy rating on May 6.
Sharon Zackfia’s rating is based on Carvana’s impressive performance in the recent quarter, where the company achieved record sales and adjusted EBITDA despite operating with significantly reduced resources compared to the previous year. Carvana managed to surpass its previous high in retail units sold with 30% less inventory, 45% less advertising expenditure, and 16% fewer employees, while also achieving its highest Net Promoter Score in nearly three years.
Furthermore, Carvana has set ambitious long-term targets, aiming to achieve annual sales of 3 million retail units with a 13.5% adjusted EBITDA margin within the next 5 to 10 years, which suggests a compound annual growth rate of 20% to 40% in units sold. The company’s ability to leverage fixed costs and improve advertising efficiencies supports this goal, and its focus on reinvesting in consumer experience is expected to strengthen its competitive position. These factors contribute to Zackfia’s positive outlook and Buy rating for Carvana’s stock.
In another report released on May 6, Citi also reiterated a Buy rating on the stock with a $280.00 price target.
Based on the recent corporate insider activity of 250 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CVNA in relation to earlier this year.