BofA Securities analyst Michael McGovern reinstated coverage on Carvana Co. (NYSE:CVNA) with a Buy rating and a price target of $185.
The analyst believes the company is well-positioned for sustained long-term growth in the $800 billion+ fragmented market.
McGovern expects Carvana to sustain recent improvements in unit economics and leverage as growth accelerates.
As prices normalize, car supply returns, and interest rates begin to fall, the market is recovering, adds the analyst.
Used car sales remain around 20% below pre-COVID levels, and the analyst anticipates further recovery as rates ...
