CVNA - Carvana: Hold On Wait A Minute (Rating Upgrade)

2024-04-17 08:18:42 ET

Summary

• Despite accounting concerns, Carvana Co.'s gross margins per unit have grown steadily.
• Carvana's wholesale business diversifies its revenue mix and allows flexible sales execution.
• Decade-high auto delinquencies and resilient prime interest rates mean that demand-side factors could be pressured.
• Technical analysis and valuation multiples fail to declare whether Carvana is overpriced or underpriced.
• We upgrade Carvana's stock to Hold but won't commit to a Buy rating for the time being.

Today's article examines a controversial company named Carvana Co. ( CVNA ) . Carvana's stock is one of the most volatile on the market due to its prevalence among meme stock investors, options traders, and media outlets. As such, a holistic view of the stock's fundamentals and market-based factors must be considered when delivering an opinion....

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