Used Car Seller Carvana On Road To $15B Revenue By 2025 As Unit Growth Accelerates: BofA
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Michael McGovern has reinstated coverage on Carvana Co. (NYSE:CVNA) with a Buy rating and a price target of $185, citing the company's strong position for growth in the used car market. McGovern expects Carvana to achieve $15.45 billion in revenue by 2025, slightly above Street estimates, and anticipates further recovery in used car sales as interest rates decrease.
September 17, 2024 | 5:33 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
BofA Securities has reinstated coverage on Carvana with a Buy rating and a price target of $185. The analyst expects Carvana to achieve $15.45 billion in revenue by 2025, slightly above Street estimates, driven by improvements in unit economics and market recovery.
The Buy rating and increased price target from BofA are likely to positively impact Carvana's stock price in the short term. The analyst's optimistic revenue projections and expectations of market recovery further support a positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Carvana through the Global X E-commerce ETF (NASDAQ:EBIZ), which may benefit from Carvana's positive outlook and growth potential.
EBIZ includes Carvana, and the positive outlook for Carvana could indirectly benefit the ETF. However, the impact is less direct compared to holding Carvana stock.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Investors can gain exposure to Carvana through the Tidal ETF Trust II Pinnacle Focused Opportunities ETF (NYSE:FCUS), which may benefit from Carvana's positive outlook and growth potential.
FCUS includes Carvana, and the positive outlook for Carvana could indirectly benefit the ETF. However, the impact is less direct compared to holding Carvana stock.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30