Mike McGovern, an analyst from Bank of America Securities, reiterated the Buy rating on Carvana Co (CVNA – Research Report). The associated price target was raised to $295.00.
Mike McGovern’s rating is based on Carvana’s impressive financial performance and growth potential. The company reported substantial year-over-year growth in unit sales, surpassing expectations with a 46% increase. Revenue and EBITDA figures also exceeded market predictions, indicating strong operational efficiency and effective cost management.
Additionally, Carvana’s management has demonstrated the ability to leverage scale benefits and improve overhead efficiency, contributing to a favorable financial outlook. The company’s capacity to handle increased sales volume and its strategic expansion into new markets further support the Buy rating. McGovern’s analysis highlights Carvana’s potential for significant market share gains in the evolving online auto retail industry, justifying the raised price objective.
In another report released today, Needham also reiterated a Buy rating on the stock with a $340.00 price target.
CVNA’s price has also changed slightly for the past six months – from $241.430 to $259.170, which is a 7.35% increase.