Needham keeps a Hold rating with no price target on Carvana but notes that the company’s investor event has exceeded the already “high expectations”. The management has cited a long runway of further efficiency gains driven by planned improvements, new apps, and a wider rollout at acquired Adesa locations, and the company’s software platform as an unappreciated and widening competitive moat set to drive continued profitable growth, though the stock’s valuation at 25-times expected forward EBITDA remains a “point of contention”, the analyst tells investors in a research note.
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