Carvana price target raised to $325 from $295 at BofA

BofA raised the firm’s price target on Carvana (CVNA) to $325 from $295 and keeps a Buy rating on the shares after Carvana CEO Garcia participated at a conference. The “most incremental takeaways” from the conference comments were that megasite conversion continues, growing reconditioning facilities from 23 to an expected 35 by end of year and that production would need to increase by 90 vehicles per week to get to a scale of 3M units over the next 10 years, the analyst tells investors. Mature cohorts like Atlanta continue to grow at a strong pace with better experience quality, faster delivery, and better inventory selection, with market share in Atlanta scaling well above the 3.5% last disclosed, possibly closer to 5%, adds the analyst, who is raising the firm’s target on continued confidence in the production ramp and lack of near-term bottlenecks, as well as positive disclosures on market share potential.