Carvana price target raised by $1 at Piper Sandler, here’s why

Piper Sandler raised the firm’s price target on Carvana to $39 from $38 as modest estimate cuts were more than offset by a lower WACC, and kept a Neutral rating on the shares. This year, Carvana addressed liquidity concerns by restructuring the company’s debt and drilling down on costs. But now that bankruptcy is off the table, the firm thinks Carvana’s valuation is capped until a reversion to growth can prove its long-term assumptions too conservative.