Carvana price target raised to $45 from $24 at RBC Capital

RBC Capital raised the firm’s price target on Carvana to $45 from $24 but keeps an Underperform rating on the shares. The company’s units, revenue and EBITDA missed, and while the management guided FY24 units below Street, the much stronger EBITDA outlook trumped all of it and is driving the short squeeze, the analyst tells investors in a research note. The company continues to show outsized gross profit per unit, GPU, improvement and is giving bulls hope of being on the doorstep of a bigger return to volume growth, though unit growth will likely remain modest throughout FY24, the firm added.