In a report released today, Rajat Gupta CFA from J.P. Morgan maintained a Buy rating on Carvana Co (CVNA – Research Report), with a price target of $350.00.
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Rajat Gupta CFA’s rating is based on several compelling factors. Firstly, Carvana Co is expected to outperform market expectations in terms of unit sales and early 2025 guidance, supported by favorable retail gross profit per unit and low vehicle price depreciation. The company’s lending business is gaining appreciation, with expectations of improved performance due to stabilizing losses and renewed partnerships, indicating a positive trajectory.
Additionally, Carvana’s strategic investments in infrastructure and the ADESA auction business are viewed as significant competitive advantages, enabling the company to gain market share and maintain high margins compared to its peers. The company’s expansion into adjacent opportunities like the marketplace is also seen as a promising growth avenue. Despite the high valuation, the potential for positive earnings revisions and strong EBITDA growth further justifies the Buy rating.
In another report released on February 5, JMP Securities also maintained a Buy rating on the stock with a $320.00 price target.