Carvana at All-Time High on New Buy, Street-High PT

  • 2 months ago
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By Christiana Sciaudone — Carvana Co (NYSE:) is trading at an all-time high after getting a Street-high price target.

Truist initiated coverage of the online used car seller with a buy and a price target of $314, TheFly reported. 

Analyst Naved Khan expects the company to increase revenue by a robust 32% CAGR over the next 10 years thanks to the increasing penetration in its current markets, expansion into new markets and rising brand awareness.

Shares of the company are up more than 235% since the start of the year. They rose 4.4% on Tuesday, to around $261.94.

In November, Morgan Stanley (NYSE:) raised its price target to $225 from $215 citing a strong third quarter and efforts to increase inventory and expand capacity. Analyst Adam Jonas said Carvana has “unique advantages” over its competitors, according to StreetInsider.    

Carvana’s market cap is currently around $45 billion. That compares to a $36 billion valuation for Ford Motor Company (NYSE:). Carvana reported third quarter revenue of $1.54 billion versus Ford’s $37.5 billion quarterly sales.

Rival Vroom (NASDAQ:) is also up, by 4%, though it has fallen some 46% since hitting a high in August. The stock went public in June.


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