The firm said that while high-growth stocks like Carvana have been particularly vulnerable in the market downturn, the selloff in the stock has been overdone.
The price target represents a potential upside of 28% from the stock's previous closing price of $58.48.
Carvana shares were climbing 10.6% to $64.70 on Thursday.
"We believe CVNA’s recently improved capital position (post $600M equity offering) and $2B increase/extension of CVNA’s loan purchase program with Ally considerably de-risk NT investor concerns," said analyst Zachary Fadem.
The company has been proactive in its response to the economic downturn caused by the coronavirus pandemic, announcing earlier this week that it will give customers up to 90 days to make their first payment.
"Carvana has always been a company intensely focused on doing the right thing for our customers, and in a time when many are feeling the strain between needing safe transportation to an essential job and personal finances, we want customers to know we’re here for them," said CEO Ernie Garcia. "Our hope is that those who simply can’t put a vehicle purchase on hold are able to get what they need quickly and easily, so they can keep moving."
Carvana will report its first-quarter results after the closing bell on May 6.
Analysts are expecting a loss of 58 cents a share on revenue of $1.17 billion.