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Carvana Stock Higher; Some Analysts See Full Valuation

Carvana reported profit in a quarter where Wall Street was expecting a loss. Some analysts now say the online used-car dealer's valuation is full.
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Shares of Carvana  (CVNA)  jumped after the online used-car seller reported second- quarter profit, beating analysts' consensus estimate, and forecast second-half growth. 

At last check Carvana shares were rising 5.1% to $354.30. 

Some analysts tempered their view of the quarter on concern about valuation. 

J.P. Morgan analyst Rajat Gupta affirmed a neutral rating and $325 price target, saying that the Tempe, Ariz., company executed well in a favorable market environment. 

But Gupta sees Carvana's second-quarter profitability as its peak for the medium term, and the stock's valuation seems full. 

Carvana Update From Doug Kass at Real Money

Raymond James maintained a market-perform rating with no price target, saying Carvana is uniquely positioned in the online car retail space. But the risk/reward equation is balanced at its current valuation. 

Stifel analyst Scott Devitt is more bullish, maintaining a buy rating while raising his price target on Carvana to $400 from $350.

Despite operational constraints that will remain a headwind for the company in the near-term, the company is positioned for healthy growth in the second half, he said. 

How to Calculate Net Worth and Why It Matters

Carvana reported second-quarter earnings of 26 cents a share compared with a loss of 62 cents a share in the year-earlier quarter. Revenue of $3.33 billion was nearly triple the $1.12 billion it reported a year earlier. 

Analysts surveyed by FactSet were expecting the company to report a net loss of 39 cents a share on revenue of $2.46 billion. 

"We delivered over 100,000 cars in the quarter, growing 96% vs. a year ago, and reported our first positive net income quarter," Chief Executive Ernie Garcia said i a statement.