Carvana (CVNA) PT Raised to $225 at Piper Sandler

Piper Sandler analyst Alexander Potter raised the price target on Carvana (NYSE: CVNA) to $225.00 (from $151.00) while maintaining a Neutral rating.

The analyst commented, "CVNA is indicated higher by 20%, following Q3 results that easily topped PSC/consensus estimates. We are increasing our estimates to capture better-than-expected execution, particularly regarding margins. Indisputably, we moved to Neutral prematurely. But in our view, the valuation now implies that CVNA will eventually max out its 3M unit/year reconditioning capacity, while perhaps exceeding the high-end of its EBITDA margin guidance range. These are believable assumptions, we think, based on the company's recent results. But we believe the valuation leaves little room for upside. We are increasing our DCF-based price target to $225 (up from $151), but we wouldn't bid the stock higher."

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