Carvana To See Better Profitability After Solid Q2 On Cost Control, Analyst Boosts Target
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Daniel Imbro has reiterated an Equal-Weight rating on Carvana Co. (NYSE:CVNA) and raised the price target to $42 from $9. This follows Carvana's better-than-expected Q2 sales and positive adjusted EBITDA guidance for Q3. Imbro raised FY23 adj. EBITDA estimate from $13.4 million to $246.9 million, reflecting Q2 beat and better future profitability from expense control. However, CVNA shares are trading lower by 2.5% to $45.08.
July 25, 2023 | 5:39 pm
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NEUTRAL IMPACT
Carvana's Q2 sales beat expectations and the company guided positive adjusted EBITDA for Q3. The price target has been raised to $42 from $9. However, shares are trading lower by 2.5%.
The news is directly related to Carvana and is important for investors as it provides an updated outlook on the company's financial performance. The raised price target indicates the analyst's positive view on the company's future profitability. However, despite the positive news, the stock price is trading lower, indicating a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100