Key Takeaways
Carvana ( CVNA ) shares gained Thursday as analysts at Piper Sandler advised buying the dip in the online used car retailer's stock after a recent selloff.
Carvana's stock has lost roughly a third of its value since the company reported quarterly results in February. Piper Sandler analysts told clients they would “accumulate" shares, and reiterated a $225 price target, implying more than 20% upside from Thursday’s close. The consensus of analysts tracked by Visible Alpha is even higher, at about $287.
The company currently has a roughly 1% share of the used car market , Piper Sander said, but the analysts expect that could eventually grow to more than 10%. They said Carvana could go from 416,000 vehicles sold last year to over 3 million in the long term.
Piper Sander also suggested Carvana could be particularly well insulated from the impact of new tariffs . That’s in part because used cars are primarily sold domestically, the analysts said, but also because Carvana could have room to grow its sales even if the broader used car market struggles.
Shares of Carvana added over 5% Thursday to close at $185.42. Even with the recent selloff, its shares have more than doubled in value over the past 12 months.
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