Wells Fargo Believes Carvana Co (CVNA) Won’t Stop Here


Wells Fargo analyst Zachary Fadem maintained a Buy rating on Carvana Co (NYSE: CVNA) today and set a price target of $60. The company’s shares opened today at $53.23, close to its 52-week high of $55.63.

Fadem observed:

“We believe Q2 results serve as further evidence that CVNA’s customer- friendly model is winning share with consumers, and considerable runway remains from market expansion and increasing online adoption. CVNA shares are +88.5% over the past 3 months (+7% SPX), and despite longer term questions around profitability and market share potential, we believe scarcity value from CVNA’s considerable sales growth, white space opportunity and rising GPUs are the primary drivers of shares today. We are raising our price target to $60, which is based on DCF analysis (implying 2x CY19 EV/Sales). Reiterate Outperform.”

According to TipRanks.com, Fadem is a 4-star analyst with an average return of 11.5% and a 72.3% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Carvana Co with a $47.30 average price target, representing a -11.1% downside. In a report issued on August 1, Robert W. Baird also reiterated a Buy rating on the stock with a $53 price target.

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The company has a one-year high of $55.63 and a one-year low of $12.17. Currently, Carvana Co has an average volume of 1.1M.

Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is negative on the stock.

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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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