Carvana price target raised to $50 from $40 at Wedbush

Wedbush raised the firm’s price target on Carvana to $50 from $40 and keeps a Neutral rating on the shares ahead of quarterly results. While shares have outperformed the Russell 200 index year-to-date likely on stronger sales trends in recent weeks, the firm believes some of the sales strength could be transitory and continues to think that Carvana can sustainably accelerate retail unit growth to +double-digit without cost to gross profit per unit and SG&A, and ultimately EBITDA. Wedbush forecasts Q4 modestly below consensus, while it also forecasts 2024 modestly below consensus.