Carvana price target raised to $425 from $415 at JPMorgan

JPMorgan raised the firm’s price target on Carvana (CVNA) to $425 from $415 and keeps an Overweight rating on the shares. The shares have “hit a pause recently” with intra-quarter traffic trends staying solid but in-line with elevated investor expectations, the analyst tells investors in a research note. The firm believes there have been minimal catalysts to drive continued outperformance. It thinks increasing adoption of artificial intelligence models, the Amazon partnership with Hertz, a pending SEC investigation, and last week’s Tricolor bankruptcy have likely put a lid on Carvana’s continued multiple expansion. However, JPMorgan believes Carvana’s fundamentals are still solid, with its market share gains “maintaining a strong pace.” It upped estimates to reflect better than expected quarter-to-date trends.