Carvana price target raised to $455 from $385 at BofA

BofA raised the firm’s price target on Carvana (CVNA) to $455 from $385 and keeps a Buy rating on the shares. The S&P Dow Jones Indices announced Carvana will be added to the S&P 500 index effective prior to market open on December 22, the analyst tells investors in a research note. The firm thinks the Street had grown “slightly skeptical” on the likelihood of Carvana being added to the index. Further, BofA believes the company’s current trajectory of share gains versus flat industry growth underscores its “idiosyncratic growth potential.” Carvana is also seeing tailwinds in its capital structure and potential for lower cost of capital, adds the firm.