Carvana’s $4B loan purchase Ally deal should allay some concerns, says Baird

Carvana (CVNA) announced the renewal of an agreement with Ally Financial (ALLY) to buy up to $4B of auto finance receivables between January 3, 2025, and January 2, 2026, essentially replacing a $4B loan-purchase agreement that expires this week, Baird tells investors in a research note. With Carvana’s stock off substantially in the wake of a short report, the renewal should allay some concerns about Carvana’s ability to market its loan portfolio to its largest partners, Baird says. The firm has a Neutral rating and $250 price target on the shares.