Optimistic Buy Rating for Carvana Driven by Strong Sales Trends and Revenue Growth

William Blair analyst Sharon Zackfia has reiterated their bullish stance on CVNA stock, giving a Buy rating on April 22.

Sharon Zackfia’s rating is based on the anticipation of a robust performance by Carvana in the upcoming quarter. The company is expected to surpass market expectations in several key areas, including used unit sales, revenue, gross profit per unit (GPU), and adjusted EBITDA.
Zackfia’s analysis of web data indicates strong sales trends, leading to an increased projection for used units sold, which is significantly higher than the consensus estimate. This optimistic outlook is further supported by an expected revenue growth of 32%, outpacing the consensus forecast. Additionally, a substantial increase in adjusted EBITDA is projected, reinforcing the Buy rating.

Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Lululemon Athletica, CarMax, and Carnival. According to TipRanks, Zackfia has an average return of 12.0% and a 50.23% success rate on recommended stocks.

In another report released on April 22, Piper Sandler also reiterated a Buy rating on the stock with a $230.00 price target.