Carvana price target raised to $25 from $20 at JPMorgan

JPMorgan raised the firm’s price target on Carvana to $25 from $20 and keeps an Underweight rating on the shares as the firm raised its Q3 EBITDA estimate, driven primarily by higher GPU and unit assumptions. The firm says near-term EBITDA revisions “continue to remain resilient” and its sense is that “most investors are geared up for a beat” in Q3. However, sentiment remains polarized and the firm thinks the forward EBITDA revision trajectory will need to remain resilient in order to sustain what it calls “the elevated valuation.”