Carvana price target raised to $230 from $225 at Piper Sandler

Piper Sandler analyst Alexander Potter raised the firm’s price target on Carvana (CVNA) to $230 from $225 and keeps an Overweight rating on the shares following a review of several used vehicle datasets, which the firm has updated to reflect Q1 figures. Used vehicle sales rose by double-digits year-over-year in March, presumably due to trade-ins and a flood of pre-tariff car buying activity. Piper thinks the frenzy has probably continued in April, but vehicle inventory, both new and used, is waning rapidly. Soon, it thinks price increases will likely materialize. As long as automotive credit keeps flowing, the firm believes Carvana will continue growing unit sales, even if higher prices prompt lower market-wide transactions.