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Carvana resumed with a Buy at Deutsche Bank

Deutsche Bank resumed coverage of Carvana (CVNA) with a Buy rating and $395 price target The company is entering a “Goldilocks scenario” where its fixed operating leverage will allow it to reinvest into its “market leading competitive moats” at a high rate, the analyst tells investors in a research note. The firm sees Carvana also delivering margin expansion ahead of current expectations. Deutsche sees online car adoption moving higher amid improved used car supply fundamentals and “modest pressures” on interest rates.

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