Needham analyst Chris Pierce reiterated a Buy rating on Carvana Co (CVNA – Research Report) today and set a price target of $340.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Carvana Co’s strategic positioning and growth potential. He sees Carvana as a leading player among large-cap growth stocks, capitalizing on a fragmented and low-tech industry with its innovative, digital-first approach. The company’s vertically integrated model is expected to enable sustainable market share gains, as evidenced by recent third-party data and Carvana’s overall low industry share, which suggests significant room for expansion.
Despite the initial market reaction possibly being influenced by perceived shortfalls in retail gross profit per unit (GPU), Pierce believes this perspective is narrow-sighted. He argues that Carvana’s growth story has always centered around unit growth due to high fixed costs, rather than short-term profitability metrics. His raised price target of $340 reflects confidence in Carvana’s capacity for earnings growth, aligning with projected financial performance from fiscal years 2025 to 2027.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $340.00 price target.
Based on the recent corporate insider activity of 269 insiders, corporate insider sentiment is neutral on the stock.