Carvana Co (CVNA – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Josey from Citi maintained a Buy rating on the stock and has a $320.00 price target.
Ronald Josey has given his Buy rating due to a combination of factors that indicate a positive outlook for Carvana Co. His analysis highlights the significant increase in retail unit sales, which are trending 40% higher year-over-year for the first quarter, surpassing market expectations. This growth is supported by an increase in average weekly inventory, which suggests that Carvana is effectively managing supply to meet strong demand.
Additionally, Josey notes that the average transaction price has slightly decreased, which could enhance Carvana’s competitive positioning in the market. Despite macroeconomic risks, he believes Carvana is well-positioned to gain market share in the used vehicle sector, benefiting from greater operating leverage efficiencies. With the stock trading at a discount since the last earnings report and a projected share price return of 72.6%, Josey reiterates his Buy rating with a target price of $320.
In another report released yesterday, Piper Sandler also upgraded the stock to a Buy with a $225.00 price target.
Based on the recent corporate insider activity of 263 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CVNA in relation to earlier this year.
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