Analyst David Lantz from Wells Fargo maintained a Buy rating on Carvana Co and keeping the price target at $425.00.
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David Lantz has given his Buy rating due to a combination of factors that highlight Carvana Co’s strategic positioning and growth potential. The company’s CEO and investor relations team have conveyed confidence in their current growth trajectory, suggesting potential upside to consensus estimates for retail unit sales in the fourth quarter. This optimism is supported by Carvana’s broad-based market share gains and the integration of AI across its operations, which is enhancing efficiency and accelerating processes.
Furthermore, Carvana is on a path to achieving significant adjusted EBITDA margins by leveraging overhead expenses as the business scales. The company’s loan originations for 2024 and 2025 are performing well, indicating a more favorable consumer credit environment than perceived. Additionally, Carvana’s initiatives, such as ADESA integrations and same-day delivery, are resonating well, supporting the momentum needed to reach its long-term sales targets. Despite some credit concerns, these factors present a solid entry point for investors, according to Lantz.
According to TipRanks, Lantz is an analyst with an average return of -1.6% and a 37.14% success rate. Lantz covers the Consumer Cyclical sector, focusing on stocks such as Monro Muffler, Dorman Products, and Carvana Co.
In another report released on November 18, Barclays also maintained a Buy rating on the stock with a $390.00 price target.