“We believe CVNA’s capital raise vastly improves financial flexibility, establishes optionality for future growth avenues, and importantly, alleviates the investor overhang around future financing needs. In our view, CVNA now has sufficient liquidity to: 1) fund planned near-term growth, including ~35 additional markets and IRC projects in Nashville & Cleveland; 2) boost IT and brand awareness investments; and 3) cushion to play offense by accelerating new markets (beyond its 65% population goal for FY19), broadening the logistics network, and extending its IRC footprint further west. CVNA has long been a battleground stock among investors, with the bull case largely predicated on CVNA’s early business momentum, strong cohort growth, and long-term potential to disrupt and gain share of a large ($760B) and highly fragmented used car market.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 8.3% and a 59.5% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
Currently, the analyst consensus on Carvana Co is a Moderate Buy with an average price target of $76.50, representing a 27.2% upside. In a report issued on May 20, Cowen & Co. also initiated coverage with a Buy rating on the stock with a $81 price target.
The company has a one-year high of $76.85 and a one-year low of $26.85. Currently, Carvana Co has an average volume of 1.78M.
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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.