Our pump detector has picked up on a pump play in CVNA stock today.

Goldman Sachs analyst Daniel Powell upgraded Carvana to Buy from Neutral with a price target of $205, up from $178. The analyst sees a “long runway for growth” in the online automotive sales category and believes valuations have “over-reacted” to the downside as his gross profit estimates have moved higher. COVID-19 will accelerate the shift online in used autos, and Carvana will drive this shift leveraging national scale to aggregate demand in a “highly fragmented” market and take share from the “long-tail of small dealers,” Powell tells investors in a research note. The current pullback in the stock warrants stepping in with a “risk/reward skewed meaningfully to the upside” for the secular winner, says the analyst.

In addition to the Goldman Sachs pump, the company released this PR within about 2 to 3 hours from GS.

Carvana is proud to announce today that it expects to achieve company records in performance across several important metrics in Q3 2020, including:

  • Retail units sold
  • Total revenue
  • Total gross profit per unit
  • EBITDA margin
  • Moreover, the company expects to be approximately EBITDA breakeven this quarter.

“The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana in metrics that demonstrate strong progress both in growth and towards profitability,” said Ernie Garcia, Carvana founder and CEO. “Hitting these records while continuing to provide the exceptional customer experiences we’ve become known for and adjusting to all the change that 2020 has brought us speaks to the quality of people we have at Carvana and to their tireless focus on our customers.”

finviz dynamic chart for  cvna