Carvana Stock Rises as Piper Sandler Advises Buying the Dip After Recent Selloff

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Key Takeaways

• Carvana shares gained Thursday as analysts at Piper Sandler advised buying the dip in the company’s stock after a new selloff.
• The online used car retailer could stand to increase its market share tenfold over the long term, Piper Sandler told.
• The analysts also suggested Carvana could be well insulated from the impact of new tariffs.

Carvana (CVNA) pay outs gained Thursday as analysts at Piper Sandler advised buying the dip in the online used car retailer’s stock after a late selloff.

Carvana’s stock has lost roughly a third of its value since the company reported quarterly results in February. Piper Sandler analysts told patrons they would “accumulate” shares, and reiterated a $225 price target, implying more than 20% upside from Thursday’s unite. The consensus of analysts tracked by Visible Alpha is even higher, at about $287.

The company currently has a roughly 1% divide up of the used car market, Piper Sander said, but the analysts expect that could eventually grow to more than 10%. They influenced Carvana could go from 416,000 vehicles sold last year to over 3 million in the long term. 

Piper Sander also make one thought Carvana could be particularly well insulated from the impact of new tariffs. That’s in part because used railway carriages are primarily sold domestically, the analysts said, but also because Carvana could have room to grow its sales equitable if the broader used car market struggles. 

Shares of Carvana added over 5% Thursday to close at $185.42. Retaliate with the recent selloff, its shares have more than doubled in value over the past 12 months.