In a report released today, Sameet Sinha from B.Riley FBR reiterated a Buy rating on Carvana Co (CVNA), with a price target of $91. The company’s shares closed yesterday at $67.18.
Sinha commented:
“We expect the pace of new market openings to decline after 2020, but IRC and VM builds to increase. As the market cohorts accelerate their penetration cycle, and the company tracks closer to AEBITDA breakeven, we believe the capital and corresponding investments are justified. While the company discloses that the total gross debt outstanding, following the offering, will stand at $1.2B, it does not intend to reduce its leverage through the new capital. We believe the funding closes the business funding gap (our estimate $200M) and provides a cushion for other business needs as markets become more turbulent.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 7.4% and a 50.5% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.
Currently, the analyst consensus on Carvana Co is a Moderate Buy with an average price target of $69.80, which is a 3.9% upside from current levels. In a report issued on May 6, Wells Fargo also reiterated a Buy rating on the stock with a $80 price target.
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The company has a one-year high of $76.85 and a one-year low of $24.36. Currently, Carvana Co has an average volume of 1.78M.
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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.
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