Carvana (CVNA) PT Raised to $130 at RBC Capital

RBC Capital analyst Brad Erickson raised the price target on Carvana (NYSE: CVNA) to $130.00 (from $90.00) while maintaining a Sector Perform rating.

The analyst comments "CVNA's Q1 report was pristine. As previewed, it meaningfully beat across all metrics with volume growth reaccelerating amidst improving GPU & very little incremental fixed cost. Consistent with our March upgrade to Sector Perform, the company is finding white space on profitability not previously thought possible and with likely retail unit re-acceleration, we'd felt that investors would aggressively extrapolate the company's future market share gains where it currently has less than 1%. Given the profitability ramp, valuation doesn't look as aggressive indicating at 24x EV/'25 EBITDA after-hours, however, given the comprehensive strength of the report, we're less inclined to chase as investor profit expectations increasingly hockey stick in the out-years. Raising estimates & target; remain SP."

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