Stephens starts Carvana at Overweight on superior economics, scaled processes

Stephens initiated coverage of Carvana with an Overweight rating and $190 price target. The company combines a digital virtual showroom with a regionally centralized back end that enables economies of scale and generates superior financial metrics in virtually every area of the business, the analyst tells investors in a research note, adding that Carvana’s superior economics and scaled processes enable it to provide a higher quality, more convenient, lower cost consumer experience. Carvana is already the most profitable used vehicle player on a per-unit basis and will be so on an EBITDA basis by year-end, the firm states.