Carvana navigating difficult operating environment, says Raymond James

Raymond James analyst Mitch Ingles reaffirms a Market Perform rating on shares of Carvana. The firm’s thesis remains relatively unchanged after Carvana’s business update, saying Carvana is navigating a difficult operating environment while also integrating 46 inspection centers from the ADESA acquisition, the analyst tells investors in a research note. Raymond James believes Carvana has a long runway for growth in the coming years, but sees a more favorable entry point likely a few quarters away if it can show sustainable EBITDA margin progress.