Needham keeps a Buy rating and $330 price target on Carvana (CVNA), saying the short report by Hindenburg seeking to question the company’s ability to grow units in the face of a lower appetite for auto loans due to partner concerns and worsening loan performance is “misplaced”. The firm is citing the extension of Carvana loan sale program with Ally Financial (ALLY) and the already depressed industry units and tight credit conditions, as well as peak seasonality for loan delinquencies and industry dynamics which are making loan extension growth look worse, the analyst tells investors in a research note. Industry conditions point unit upside is the likely path forward, the firm adds.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CVNA:
- Wedbush sees ‘no smoking gun’ in Carvana short report
- Carvana lending fears continue to be overblown, says JPMorgan
- Carvana upgraded to Outperform from Sector Perform at RBC Capital
- Carvana (CVNA) Renews Deal with Ally Financial to Sell Up to $4B in Car Loans
- Carvana amending Ally pact ‘pokes at least one hole’ in short thesis, says BTIG