Analyst David Lantz of Wells Fargo maintained a Buy rating on Carvana Co (CVNA – Research Report), retaining the price target of $310.00.
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David Lantz has given his Buy rating due to a combination of factors including Carvana Co’s strong performance in the fourth quarter and the promising outlook for fiscal year 2025. Despite the challenges posed by market expectations and some uncertainties around future growth metrics, Carvana’s performance in retail units and adjusted EBITDA has been impressive. The company has demonstrated significant quarter-over-quarter acceleration in retail unit sales and EBITDA growth, setting a foundation for continued success.
Furthermore, Carvana’s strategic moves, such as ADESA site integrations, are expected to increase capacity and offer a substantial growth opportunity. The analyst points to improvements in inventory selection and a reduction in average delivery times as additional positives. While there are short-term obstacles like interest rates, Lantz sees potential in Carvana’s plans to unlock capacity and reduce debt burdens, which could enhance the company’s position in an improving industry landscape.
According to TipRanks, Lantz is a 3-star analyst with an average return of 8.7% and a 68.42% success rate. Lantz covers the Consumer Cyclical sector, focusing on stocks such as Carvana Co, Monro Muffler, and Mister Car Wash.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $340.00 price target.