Carvana soars 34% after record 3rd-quarter projections and Goldman Sachs upgrade

Business Wire

  • Shares of Carvana rose up to 34% on Tuesday after the company projected record performance in the third quarter in several categories including retail units sold and total revenue. 
  • Goldman Sachs upgraded its Carvana rating to “buy” and upped its price target to $205 per share from $178. 
  • Carvana is up roughly 140% year-to-date, and had gained more than 88% year-to-date before Tuesday’s jump.
  • Watch Carvana trade live here.

Shares of Carvana soared up to 34% on Tuesday after the company projected record performance in the third and received a “buy” rating from Goldman Sachs.

The online used-vehicle sales platform announced Tuesday that it expects to hit records in several categories for the third quarter of 2020. The categories named included retail units sold, total revenue, total gross profit per unit, and Ebitda margin. 

“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,” said Ernie Garcia, Carvana founder and CEO, in a press release.

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Carvana also said it expects to be approximately breakeven on an Ebitda basis this quarter. 

On Tuesday Goldman Sachs upgraded Carvana to a “buy” rating from “neutral,” and upped its price target to $205 per share from $178. JPMorgan also upgraded Carvana to “overweight” from “neutral” on Tuesday. 

Carvana is now up roughly 140% year-to-date, and had already gained more than 88% year-to-date before Tuesday’s jump. 

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