Carvana price target lowered to $485 from $545 at UBS

UBS lowered the firm’s price target on Carvana (CVNA) to $485 from $545 and keeps a Buy rating on the shares. Carvana reported a Q4 EBITDA miss driven by higher reconditioning costs, which are viewed as temporary, though near-term retail GPU and EBITDA per unit may remain flat to slightly down year over year, the analyst tells investors in a research note. Longer term, the focus remains on scaling toward 3 million units, with management denying recent short-seller claims and positioning the company to gain share in the fragmented used vehicle market while targeting mid-20% EBITDA CAGR through the end of the decade, the firm says.