Carvana price target raised to $45 from $10 at Baird

Baird raised the firm’s price target on Carvana to $45 from $10 and keeps a Neutral rating on the shares. The firm said the company increased Q3 adjusted EBITDA guidance as a result of improving operating trends intra-quarter and recent loan sales. Assuming the increasing efficiency proves sustainable, and the ABS market remains open, we expect improving line of sight to positive free cash flow, although this requires significant operating discipline and a meaningful ramp in retail unit sales.