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On Thursday, Piper Sandler, a financial firm, increased its price target on Carvana shares (NYSE:CVNA) to $340 from the previous $315, while maintaining an Overweight rating on the stock. With a market capitalization of $2.79 billion, Carvana has drawn significant analyst attention. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $16 to $28. The firm’s analysts believe that despite the macroeconomic concerns affecting the market, Carvana is poised to achieve significant revenue growth.
The financial firm’s analysts are optimistic about the used car technology sector and particularly bullish on Carvana’s ability to expand its revenue by 25%-35% irrespective of the broader economic conditions, with expectations for even faster EBITDA growth. This optimism appears well-founded, as InvestingPro data shows impressive revenue growth of 32.89% over the last twelve months. According to Piper Sandler, Carvana’s recent performance has been strong, and it is anticipated that investors will continue to value the company’s fundamental achievements.
The firm’s analysts have highlighted Carvana’s low market share as an opportunity for growth, noting the company’s minimal exposure to tariffs and the potential for operational expenditure leverage. With the capacity to sell up to 3 million cars, compared to the 416,000 retail units sold in 2024, Carvana is seen as having significant room for expansion. Piper Sandler expects that Carvana will eventually use all of its capacity and potentially more.
The analysts’ positive outlook for Carvana is also based on a discounted cash flow (DCF) analysis, which contributed to the revised price target. They have underlined Carvana’s fundamental outperformance in a market full of uncertainties, suggesting that this trend will likely continue.
Carvana, known for its online car buying and selling platform, has been a key player in the digital transformation of the used car industry. As per Piper Sandler’s analysis, the company is well-positioned to capitalize on its existing capabilities and market position to drive future growth.
In other recent news, ACV Auctions reported first-quarter 2025 revenue of $183 million, surpassing the forecast of $182.24 million. This marks a 25% increase from the previous year, driven by a 28% rise in auction and assurance revenue. The company also reported an adjusted EBITDA of $14 million, exceeding the high-end of its guidance. Goldman Sachs responded to these results by raising ACV Auctions’ price target from $25 to $26 while maintaining a Buy rating, reflecting confidence in the company’s strategic direction. ACV Auctions emphasized platform developments, including the expansion of ACV Transport and the introduction of e-commerce solutions for OEMs. The company also announced plans to launch a remarketing center in the second half of 2025. For the second quarter, ACV Auctions provided revenue guidance of $193-$198 million, expecting a 20-23% growth. Full-year revenue guidance is set at $765-$785 million, with adjusted EBITDA projected at $65-$75 million.
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