Carvana Co (NYSE:CVNA) shares rallied in early trading on Thursday, after the company reported on Wednesday positive second-quarter earnings.
CVNA shares are getting near their 52-week high. Check the latest price here.
The announcement came amid an exciting earnings season. Here are some key analyst takeaways.
BofA Securities On Carvana
Analyst Michael McGovern maintained a Buy rating, while lifting the price target from $375 to $425.
Carvana reported revenues of $4.84 billion and EBITDA of $601 million, beating Street estimates of $4.58 billion and $553 million, respectively, McGovern said in a note. The company's units sold grew 41% year-on-year to 143,000, coming in 1,600 above consensus, he added.
Management guided to a “sequential increase” in units in the third quarter, the analyst stated. While the full-year EBITDA guidance of $2-$2.2 billion came in-line with expectations, this "shows confidence in stable 2H margins," he further wrote.
Check out other analyst stock ratings.
Wedbush On Carvana
Analyst Scott Devitt reiterated a Neutral rating, while raising the price target from $320 to $360.
Carvana reported record-high quarterly adjusted EBITDA, Devitt said. Management expects sequential growth in retail units sold, implying unit growth of at least 32% year-on-year, ahead of the consensus of 30%, he added.
The stock climbed after the company reported its results, "reflecting heightened investor confidence in management’s ability to meaningfully drive sustainable growth while improving profitability at scale," the analyst wrote. Management has made good progress in heading towards the company’s strategic goal of achieving three million in total annual retail sales with adj. EBITDA margins of 13.5% within the next five to 10 years, he further stated.
Needham On Carvana
Analyst Chris Pierce reaffirmed a Buy rating, while taking the price target significantly higher from $340 to $500.
Carvana is "the best large cap, profitable growth story in our coverage," Pierce said.
The company has set a low bar for unit growth and has been conservative in its adjusted EBITDA guidance, the analyst stated. "At ~$400, we believe the market is pricing in CVNA not achieving their retail unit goal in the guided time frame, despite demand never being part of a CVNA bear case given the offering versus peers," he further wrote.
CNVA Price Action: Shares of Carvana had risen by 18.14% to $394.33 at the time of publication on Thursday.
Read More:
• From Economic Anxiety To Embroidery: Millennials Are Leaning Into Their Granny Eras
Photo: Around the World Photos on Shutterstock
