Left for dead in early 2023, Carvana (CVNA) came back strong.
In fact, since bottoming out at $3.62, the stock is now up to $32.30, and could see higher highs. For one, the company recently said it now expects to achieve adjusted EBITDA above $50 million in the second quarter of 2023. Two, analysts love the stock. DA Davidson raised its price target to $18 from $7. Citi raised its target to $25 from $11. And Wells Fargo raised its target to $15 from $10. For us, from current prices, we’d like to see CVNA again test $27 a share.
Three, with strong consumer demand for EVs, the company just said, “Carvana offers more than 46 EV makes and models, with more than 40% of our EV options under $25,000,” said Kevin Fitzgerald, Carvana Director of Inventory Purchasing. “Carvana’s digital leadership and customer focus is poised to support more of America’s growing interest in EVs and all vehicles through our proven auto ecommerce platform for buying, selling and trade ins.”
Also, “In the past five years, Carvana’s total EV unit sales have increased by 786%, as of year end 2022 data, signaling more buyers are turning to the used channel for more accessible entries into EV ownership.”