By Christiana Sciaudone
Investing.com -- Carvana soared 31% after saying it expects to report record results and getting a slew of analyst accolades.
The ecommerce platform for buying and selling cars sees the following areas performing well in the third quarter: retail units sold, revenue, gross profit per unit and earnings before interest, taxes, depreciation and amortization margin.
The company expects to be approximately Ebitda breakeven for the quarter. Shares are up 174% in 2020 and currently trade around $229.
Goldman Sachs (NYSE:GS) bumped its rating to buy from neutral with a price target of $205, from $178. "Carvana’s scale and vertical integration position it best to drive the used auto category online for many years," Goldman said, according to StreetInsider.
Piper Sandler (NYSE:PIPR) reiterated its overweight rating and $209 price target noting that app downloads have been recently trending higher by about 15% year-on-year, according to StreetInsider.
"From the standpoint of demand, it is clear (in our view) that COVID-19 is prompting consumers to seek out used cars, and CVNA is a key beneficiary of this trend," Piper Sandler said.
JPMorgan (NYSE:JPM) analyst Rajat Gupta upgraded Carvana to overweight from neutral, while Wells Fargo (NYSE:WFC) maintained its buy rating on Carvana, setting a price target of $250.
“The momentum that we saw in the second quarter accelerated into the third, leading to record performance for Carvana in metrics that demonstrate strong progress both in growth and towards profitability,” Ernest Garcia, III, founder and chief executive officer, said.