Carvana Stock Rises After Needham Upgrade, New EV Shopping Features

Carvana (CVNA) shares sped higher Wednesday after analysts astatine Needham upgraded its banal and nan institution unveiled caller features for buying electric vehicles (EVs).

The digtal car-buying institution is simply a "secular maturation communicative pinch a cyclical betterment kicker,” Needham analysts Chris Pierce and Mackenzie Holleran wrote successful a Wednesday statement successful which they lifted their standing to "buy" from "hold."

Needham issued a value target of $160, a 27% premium complete Tuesday’s closing price. Carvana shares, which traded arsenic debased arsenic $25.09 past November, were up 5.7% to $132.79 arsenic of 12:15 p.m. ET Wednesday.

"After a volatile past we spot [Carvana] becoming a profitable secular maturation story, pinch expanding unit portion income and improving gross profit per portion metrics from leveraging a high-fixed-cost base," nan analysts wrote. 

New Features for Buying EVs

Carvana connected Wednesday launched a “streamlined process” it said makes buying utilized EVs easier. The caller process lets customers hunt for EVs that specifically suffice for nan Clean Vehicle Tax Credit and automatically applies nan up to $4,000 successful savings astatine checkout. 

“By integrating nan national taxation in installments straight into our ecommerce experience, we are driving convenience and savings for nan expanding information of our customers willing successful buying EVs," Chief Product Officer Dan Gill said.