In a report released today, Chris Pierce from Needham reiterated a Buy rating on Carvana Co, with a price target of $500.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Carvana Co’s strong growth potential and market position. He emphasizes Carvana’s unique business model and its leading position in the fragmented automotive industry as key reasons for the positive outlook. The company’s untapped vehicle reconditioning capacity and ongoing operational efficiencies are expected to enhance its adjusted EBITDA per retail unit, contributing to its long-term profitability.
Additionally, Pierce’s confidence is reflected in the raised price target of $500, which is supported by multiple valuation approaches. These include a 35x multiple of the projected 2027 adjusted EBITDA, a 25x multiple of the 2030 adjusted EBITDA discounted back, and the achievement of 3 million retail units at guided margins by 2033. These factors collectively underscore Carvana’s potential for sustainable growth and justify the Buy rating.