Carvana added to ‘Conviction List’ at Needham

Needham keeps a Buy rating and $500 price target on Carvana (CVNA) while adding the stock to the firm’s Conviction List, replacing Aurora Innovation (AUR). The firm is citing “short term headwinds” having an outsize effect on both sentiment and valuation on Carvana, stating that retail unit growth is the highest level driver of the story, with the company still relatively early on their growth trajectory. Needham adds that adjusted EBITDA per unit is unlikely to take a further stepback given heightened company focus, solving for this short term concern.