Carvana (CVNA) Earnings Preview, Jefferies Expects Gross Profit Upside
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Jefferies analyst John Colantuoni reiterated a Buy rating and $350.00 price target on Carvana (NYSE: CVNA) ahead of earnings, expecting in-line retail units of +40% y/y and revenue growth of +44% y/y. Consensus estimates are likely conservative however, due to accelerating traffic.
The analyst stated "Unique visits to CVNA's site/ app accelerated to 98% growth in Q4, the highest level of quarterly growth since 2018 when units grew 124% and indicating efforts to rebuild inventory is helping drive more consumers to the site. We believe the buyside is looking for retail units of ~60% and total revenue of ~65%, which is achievable in our view based on traffic trends and CVNA's historical upper funnel efficiency (unit sales per unique visitor). We also see upside to our/consensus estimates for Gross Profit per Unit driven by a financing market that has remained constructive through Q4 despite cautious commentary from the company during Q3 earnings."
Shares of Carvana closed at $290.00 yesterday.
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