Carvana (NYSE:CVNA) news for Friday about a new price target for CVNA stock has it heading higher.
Wells Fargo is behind this Carvana news. The firm says that the sell-off of the stock has been too strong and that lower prices represent a good buying opportunity for potential investors.
To go along with this train of thought, the firm is increasing its price target for the stock up $75 per share. That’s a 50% increase over its previous price target of $50 per share for the company’s stock. It’s also 28.56% higher than the stock’s closing price of $58.34 per share on Wednesday.
Zachary Fadem, a Wells Fargo analyst, said this about the Carvana news in a clip obtained by TheStreet.com.
“We believe CVNA’s recently improved capital position (post $600M equity offering) and $2B increase/extension of CVNA’s loan purchase program with Ally considerably de-risk NT investor concerns.”
Other recent Carvana news includes a release date for its first-quarter 2020 earnings report. The company will release this report on May 6, 2020, after the markets close. Company leaders will be going over the results in a conference call at 5:30 p.m. Eastern Time that day.
The estimates are for Carvana to report losses per share of -58 cents with revenue coming in at $$1.17 billion. Investors will have to wait until next month to see if the company can actually meet these estimates.
CVNA stock was up 4.91% when markets closed on Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
