Needham analyst Chris Pierce raised the firm’s price target on Carvana (CVNA) to $300 from $200 and keeps a Buy rating on the shares. The company handily beat consensus GPU – Gross Profit per Unit – estimates again, driving elevated gross profit dollars on an expected retail unit sales beat while holding operating expenditure flattish, driving a 30% EBITDA beat, the analyst tells investors in a research note. Needham adds it is raising retail unit estimates in 4Q and beyond driven by company guidance and excess physical capacity, with Carvana aiming to grow inventory to drive conversion and unit growth.
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