Carvana Stock Rises as Bullish JPMorgan Analysts Predict an Earnings Beat

Carvana (CVNA) shares roseate Friday pursuing a prediction of an net hit from JPMorgan analysts, who lifted their value target connected nan online car seller's shares for nan 4th clip this year.

The analysts foretell that Carvana will hit statement estimates erstwhile it reports net astatine nan extremity of nan period arsenic nan company's margins amended amid cost-cutting efforts that helped present Carvana's best 4th connected record earlier this year.

The shares, precocious up astir 3%, person risen astir 150% this twelvemonth and beryllium conscionable a spot beneath year-to-date highs.

Analysts' Price Target Well Above Consensus

Carvana posted its first profitable year successful fiscal 2023. JPMorgan analysts said Friday that nan institution has fixed itself "wiggle room to adhd immoderate slack to thrust accelerated maturation and show leverage connected fixed costs."

While nan institution "has demonstrated a crisp turnaround successful operations complete nan past 12-18 months, we judge nan adjacent shape of 'profitable growth' requires maintaining nan caller precocious level of execution intensity" crossed nan company, nan analysts wrote.

The analysts lifted their value target to $155 from $150 and reiterated an "overweight" standing connected nan stock. Their target is substantially supra nan statement of analysts tracked by Visible Alpha, which is adjacent $118.

Wall Street is looking for quarterly gross of $3.27 cardinal and a nett nonaccomplishment of $16.1 cardinal erstwhile it reports second-quarter results later this month, according to Visible Alpha. Its results are expected July 31.