Analyst John Colantuoni of Jefferies maintained a Buy rating on Carvana Co, retaining the price target of $475.00.
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John Colantuoni has given his Buy rating due to a combination of factors indicating strong growth potential for Carvana Co. The company’s retail units showed a significant year-over-year increase of 41% in October, closely aligning with the growth observed in the third quarter. This consistent performance suggests a potential 6% upside to consensus estimates for the fourth quarter, driven by robust unit growth.
Additionally, Carvana’s average vehicle selling price saw a modest increase, which, along with a recovery in the spread between used retail and wholesale vehicle prices, is expected to bolster revenue and gross profit per unit. The rise in monthly unique visitors to Carvana’s website further supports the positive outlook, as it indicates growing consumer interest without a proportional rise in advertising expenses. These factors collectively underpin the Buy rating, highlighting Carvana’s promising trajectory in the market.
In another report released yesterday, Wedbush also upgraded the stock to a Buy with a $400.00 price target.
Based on the recent corporate insider activity of 356 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVNA in relation to earlier this year.