William Blair analyst Sharon Zackfia has reiterated their bullish stance on CVNA stock, giving a Buy rating on July 21.
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Sharon Zackfia’s rating is based on the anticipation of another robust quarter for Carvana, marked by record-breaking retail unit sales and adjusted EBITDA. The analysis of web data indicates strong sales trends throughout the quarter, leading to an increased projection for used units sold to 143,000, which signifies over 40% growth for the third consecutive quarter and surpasses the consensus estimate of around 142,000.
Furthermore, the expected revenue growth of 38% is comparable to the first quarter, despite a slight decline in average selling prices due to a higher mix of marketplace units and a significant rise in wholesale sales. The forecasted 60% increase in adjusted EBITDA to $589 million, which is approximately 7% above previous estimates, reflects improved year-over-year gross profit per unit and SG&A leverage.
In another report released on July 21, J.P. Morgan also maintained a Buy rating on the stock with a $350.00 price target.
Based on the recent corporate insider activity of 325 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVNA in relation to earlier this year.