Carvana's (CVNA) Growth Sustainability Underappreciated - Citizens

Citizens analyst Andrew Boone reiterated a Market Outperform rating and $460.00 price target on Carvana (NYSE: CVNA).

The analyst commented, "Last week, we spent a day at Carvana's Haines City, Florida IRC. We had the opportunity to be explained each facet of the reconditioning and wholesale process, and come away believing the ability for a third party to replicate Carvana is increasingly challenging given the company's numerous interlinked operations that are each optimized through cumulative learnings and proprietary software. This as managers are solving problems from the customer perspective and trying to drive a delightful experience that can lead to better word of mouth and referral traffic. This creates structurally better unit economics for Carvana, leading to better pricing, while Carvana's scale offers unique abilities like same-day delivery as its network of fulfillment locations are ever closer to consumers and hold growing inventory given faster turn times. With a best-in-class consumer experience, a business that would be extremely difficult to replicate, and a massive market, we believe the sustainability of Carvana's growth remains underappreciated as we reiterate our Market Outperform rating and $460 price target."

For an analyst ratings summary and ratings history on Carvana click here. For more ratings news on Carvana click here.

Shares of Carvana closed at $318.31 yesterday.

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