B.Riley FBR analyst Sameet Sinha reiterated a Buy rating on Carvana Co (NYSE: CVNA) today and set a price target of $76. The company’s shares opened today at $58, close to its 52-week high of $60.45.
Sinha observed:
“We reiterate our Buy rating on Carvana Co. (CVNA) as we believe recent improvements in operations and execution should be aided by favorable macro dynamics that will likely drive upside to estimates/guidance in the seasonally weak 2H. Used car demand among consumers has been strong as incentives on new cars have flattened Y/Y , reducing the pricing differential which had made new cars attractive. Rising interest rates are also making used cars more appealing to consumers. Apart from the consumer demand uptick, dealer demand is also up as dealers focus more on used cars ahead of potential tariffs on new car sales. As dealer focus shifts to used versus new, we expect associated marketing spend to also shift.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.4% and a 51.7% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Alphabet Inc.
Currently, the analyst consensus on Carvana Co is a Moderate Buy with an average price target of $55.50, a -4.3% downside from current levels. In a report issued on August 8, Robert W. Baird also maintained a Buy rating on the stock with a $53 price target.
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Based on Carvana Co’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $9.97 million. In comparison, last year the company had a GAAP net loss of $4.28 million.
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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.
