Bank of America Securities analyst Mike McGovern reiterated a Buy rating on Carvana Co today and set a price target of $375.00.
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Mike McGovern has given his Buy rating due to a combination of factors including Carvana’s robust production ramp and market share gains. The company has shown strong unit growth in the second quarter, with expectations of continued performance in the third quarter, despite some industry concerns about growth. Carvana’s unique production capabilities have allowed it to outperform industry levels, and the company has expanded its production sites significantly, which is expected to enhance availability and selection for customers.
Additionally, data points such as increased Google search trends for ‘Carvana sell my car’ and a resilient used car market support the positive outlook. The company has also been successful in its legacy markets, achieving new highs in market share, and continues to expand its inventory and hiring efforts. These factors, combined with a favorable market environment, underpin McGovern’s confidence in Carvana’s ability to maintain strong growth and justify the Buy rating with a price objective of $375.
In another report released on July 25, Oppenheimer also upgraded the stock to a Buy with a $450.00 price target.