William Blair analyst Sharon Zackfia has maintained their bullish stance on CVNA stock, giving a Buy rating on July 28.
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Sharon Zackfia has given her Buy rating due to a combination of factors that highlight Carvana Co’s strong performance and growth potential. The company has demonstrated impressive results with its third consecutive quarter of over 40% growth in retail units sold, setting new records in revenue, adjusted EBITDA, and adjusted EBITDA margin. This consistent growth indicates that Carvana is benefiting from a positive feedback loop, where increased sales lead to a wider inventory selection, further driving sales in a market where each product is unique.
Additionally, Carvana’s integration of ADESA is enhancing its infrastructure, bringing vehicles closer to consumers and reducing transportation costs, which also contributes to faster delivery times and improved sales conversion. Furthermore, the company plans to reinvest its operational efficiencies into its industry-leading gross profit per unit (GPU), with increased advertising spend expected in the upcoming quarter to further boost sales. These strategic initiatives and strong financial performance underpin Zackfia’s optimistic outlook and Buy rating for Carvana Co.
Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Carvana Co, Kura Sushi USA, and Birkenstock Holding plc. According to TipRanks, Zackfia has an average return of 12.1% and a 51.00% success rate on recommended stocks.
In another report released on July 28, RBC Capital also maintained a Buy rating on the stock with a $400.00 price target.