Carvana price target raised to $340 from $320 at RBC Capital

RBC Capital raised the firm’s price target on Carvana (CVNA) to $340 from $320 and keeps an Outperform rating on the shares. The company’s Q1 results was a strong one against a bar that had risen quickly into the print, the analyst tells investors in a research note. Retail units outperformed where estimates will continue moving up, and Carvana continued demonstrating the outsized leverage it has in both GPU and fixed costs, which may lead to a long-term structural pricing advantage, the firm adds. The company is setting itself on a course to ramp production up significantly, RBC states.