Carvana initiated with a Buy at BTIG

BTIG initiated coverage of Carvana with a Buy rating and $155 price target. The company trades at a premium to most e-commerce and auto-related stocks, but its vertically-integrated and in-sourced business model is “simply a better mousetrap in an enormous” total addressable market that investors shouldn’t overlook, the analyst tells investors in a research note. The firm says Carvana has already achieved “industry-leading” EBITDA margins with just 1% share of the total used car market and 6% of the smaller, “but still huge,” digital total addressable market for used cars. The company “looks to be the one in the catbird seat, able to grow share and profits simultaneously,” BTIG contends.