BTIG says Carvana fundamental value drivers intact

BTIG analyst Marvin Fong keeps a Buy rating and $450 price target on Carvana (CVNA). The firm notes that with the recent bankruptcy of sub-prime lender Tricolor and CarMax adding more reserves to its loan portfolio, general macro concerns have brought renewed interest into Carvana’s financing exposure. BTIG further notes that it does not believe that Carvana will lose access to the securitization markets regardless of whether past securitizations experience impairment to their equity tranche, and while the firm is closely following credit across consumer, it continues to see the company’s fundamental value drivers as intact.