In a report released today, Ronald Josey from Citi reiterated a Buy rating on Carvana Co, with a price target of $490.00.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Carvana Co’s strong performance and growth potential. The company’s retail unit sales for the third quarter are projected to reach approximately 158,000 units, marking a significant year-over-year increase of 45% and a quarter-over-quarter rise of 10%. This performance surpasses previous estimates and consensus expectations, indicating robust demand and effective sales strategies.
Additionally, Carvana’s inventory levels have seen substantial growth, with average weekly inventory up by 83% year-over-year, which is expected to enhance conversion rates. The company’s advertising efforts have also resulted in increased web traffic, with unique visitors growing by 19% year-over-year. These factors, combined with improved operational efficiencies and a positive outlook for EBITDA expansion, support the Buy rating and a target price of $490.
In another report released on September 3, Morgan Stanley also maintained a Buy rating on the stock with a $450.00 price target.
Based on the recent corporate insider activity of 368 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVNA in relation to earlier this year.