Carvana’s Stock (CVNA) Making New High As Earnings Beat Brings Wave of Price Upgrades

Carvana's stock (CVNA) is riding a wave of enthusiasm today, propelled by a record-breaking quarter and a chorus of bullish analyst upgrades that look set to shatter old records. The stock price is up at $394 in the pre-market, up 18.1%, and continuing the upward trend that has seen the stock gain considerable ground this year (+67% YTD leading in).

BTIG analyst Marvin Fong's recent move to raise the firm's price target to $450 from $395, while maintaining a “Buy” rating, underscoring the growing confidence in Carvana's ability to sustain its impressive growth and profitability.

Citi have also been quick to raise their price target on the stock, moving up from $415 to $490 seeing the firm as well positioned to hit the 3M annual sales target in 10 years.

Carvana's recent earnings beat has served as the primary catalyst for the stock's surge and the subsequent analyst upgrades. The firm came in with an EPS number of $1.28, beating the expectation of $1.14 by more than 10%. Revenue of $4.84B was also a beat on the $4.59B expected, and reflected a record quarter for the firm.

Analysts have been quick to recognize Carvana's impressive performance, with several firms raising their price targets and reiterating their “Buy” ratings. BofA raised to $425, alongside Wells Fargo; Citizens JMP are up to $460, JP Morgan raised to $415, and Wedbush $360 (Neutral).

Carvana's strategic goals and future outlook further support the bullish sentiment surrounding the stock. The company has set ambitious long-term objectives, including a sales target of 3 million retail units annually within the next 5 to 10 years.

Additionally, Carvana aims to achieve an adjusted EBITDA margin of 13.5%, indicating a strong focus on sustainable growth and profitability. These goals underscore Carvana's commitment to scaling its operations, enhancing financial performance, and solidifying its position as a leader in the online used car retail market. CEO Ernie Garcia has emphasized the company's commitment to improving customer experience and financial performance, further instilling confidence in investors.

The company's record-breaking quarter, coupled with positive analyst revisions and strategic growth plans, will have pushed Carvana's stock price to a new all time high on open, with the previous resistance at $360 giving way in a big show of strength from the bulls. As price discovery takes place, where next for this runaway recovery story?