Carvana Co (CVNA) Received its Third Buy in a Row

After Robert W. Baird and Barrington gave Carvana Co (NYSE: CVNA) a Buy rating last month, the company received another Buy, this time from Wells Fargo. Analyst Zachary Fadem maintained a Buy rating on Carvana Co today and set a price target of $72. The company’s shares closed yesterday at $38.58.

Fadem noted:

“We hosted at our WF Valley, UT. Shares have been volatile since last week’s analyst day (-19% vs -2% SPX), which we believe owes in part to a lack of NT catalysts coming out of the event, investor concerns around Q4 volumes and the 12/4 announcement that KMX is expanding its Omnichannel pilot in Atlanta. In recent months, shares have become a battle ground, with bulls pointing to CVNA’s large and highly fragmented addressable market ($740B), triple-digit unit growth (116%+ in FY18), strong GPU progress and considerable LT runway; bears (with ~41% short interest) have been more focused on the potential for NT trend deceleration, macro/technical factors, and questions around financing and the need for additional capital.”

According to TipRanks.com, Fadem is a 4-star analyst with an average return of 6.2% and a 56.5% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Carvana Co with a $64.75 average price target, implying a 67.8% upside from current levels. In a report issued on December 4, Robert W. Baird also maintained a Buy rating on the stock with a $68 price target.

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The company has a one-year high of $72.59 and a one-year low of $16.02. Currently, Carvana Co has an average volume of 1.68M.

Based on the recent corporate insider activity of 78 insiders, corporate insider sentiment is negative on the stock.

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Carvana Co. is a holding company and an eCommerce platform, which engages in the buying of used cars and provision of different and convenient car buying experience. It operates through the following segments: Vehicle Sales; Wholesale Vehicle Sales; and Other Sales and Revenue. The Vehicle Sales segment consists of used vehicle to customers through website.

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