Carvana Co, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Rajat Gupta CFA from J.P. Morgan maintained a Buy rating on the stock and has a $425.00 price target.
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Rajat Gupta CFA has given his Buy rating due to a combination of factors that highlight Carvana Co’s potential for growth and market positioning. Despite recent challenges and a pause in stock performance, Carvana’s fundamentals remain robust, with strong market share gains and strategic capacity expansion. The company’s recent prime ABS deal reflects a solid balance sheet and effective pricing strategies, which are expected to support gradual re-rating over time.
Carvana’s strategic investments, including the acquisition of ADESA, have positioned it as a leader in the online used vehicle market. The restructuring efforts in 2023 have resulted in a more profitable and agile operation, allowing Carvana to outperform its peers in unit economics. These competitive advantages, coupled with a favorable outlook for earnings revisions, underpin the Buy rating and the expectation of sustained margin growth and market share expansion.
In another report released on September 10, Citi also reiterated a Buy rating on the stock with a $490.00 price target.