Carvana Co (CVNA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst David Lantz from Wells Fargo maintained a Buy rating on the stock and has a $310.00 price target.
David Lantz has given his Buy rating due to a combination of factors including Carvana Co’s strong performance in the first quarter, which exceeded expectations with significant gains in retail units and adjusted EBITDA. The company has also provided an optimistic outlook for the second quarter, despite some short-term challenges like tariffs and macroeconomic conditions. Lantz notes that Carvana’s long-term goals appear achievable, with plans to significantly increase retail unit sales and improve profitability over the next 5-10 years.
Carvana’s operational efficiency improvements, such as reduced reconditioning and transport costs, have contributed to better gross profit per unit. Additionally, the company’s strategic focus on growth over margins is expected to drive substantial retail unit and adjusted EBITDA growth in the coming years. Despite carrying fixed costs for higher volumes, this is anticipated to lead to an expansion in adjusted EBITDA percentage over time. These factors collectively support Lantz’s positive outlook and Buy rating for Carvana Co.
Based on the recent corporate insider activity of 250 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CVNA in relation to earlier this year.