Carvana price target raised to $175 from $150 at Wedbush

Wedbush raised the firm’s price target on Carvana to $175 from $150 and keeps a Neutral rating on the shares. The firm sees limited risk to Carvana Q3 Other GPU, modest risk to Q4. Wedbush now forecasts Q3 unit sales of 108,100 vs. its prior 105,300 and consensus of 106k. Its view is based on rising carvana.com website traffic data and better conversion of traffic due to increased inventory levels, lower ASPs and incrementally lower loan APRs that are improving affordability. The firm views the three-day port strike as a non-event, while Hurricane Helene likely clipped sales in the Southeast at the end of the quarter, pushing these sales to October.