In a report released today, Sameet Sinha from B.Riley FBR maintained a Buy rating on Carvana Co (NYSE: CVNA), with a price target of $76. The company’s shares opened today at $70.82, close to its 52-week high of $71.24.
Sinha wrote:
“Monday pre-market (9/10), Carvana Co. (CVNA) announced plans to raise $300M in senior unsecured notes due in 2023. We believe it is likely the company will use the proceeds to continue to build out new geographies. The critical element of yesterday’s filing was additional data on market profitability by cohort, which indicates that more markets are more profitable than expected and newer markets are getting to profitability faster than old ones. Management also elaborated on the need for $150M-$200M in annual capex due to market growth, which is in line with our expectation of $170M/$180M in 2018/2019. We believe this debt raise will close the $200M in funding gap that we estimated, before the company reaches cash flow breakeven.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 7.3% and a 54.4% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Alphabet Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Carvana Co with a $57.78 average price target, representing a -18.4% downside. In a report released yesterday, Robert W. Baird also reiterated a Buy rating on the stock with a $60 price target.
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The company has a one-year high of $71.24 and a one-year low of $12.17. Currently, Carvana Co has an average volume of 1.1M.
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Carvana Co. is a holding company and an eCommerce platform, which engages in the buying of used cars and provision of different and convenient car buying experience. It operates through the following segments: Vehicle Sales; Wholesale Vehicle Sales; and Other Sales and Revenue. The Vehicle Sales segment consists of used vehicle to customers through website.
