Carvana (CVNA) Earnings Preview, Jefferies Expects Gross Profit Upside

February 24, 2021 8:36 AM EST
Get Alerts CVNA Hot Sheet
Price: $265.00 -1.19%

Rating Summary:
    18 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 17 | Down: 10 | New: 10
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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."

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 $290.00 yesterday.



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