Carvana Upgraded to Outperform at Wedbush, Shares Gain 7%

Core Viewpoint - Wedbush upgraded Carvana from Neutral to Outperform and raised its price target to $400 from $380, resulting in a more than 7% increase in shares intra-day on Monday [1] Group 1: Market Performance - Carvana shares had declined approximately 13% over the past month, underperforming the S&P 500, primarily due to weak near-term results from peer CarMax and broader credit market concerns [1] - The current trading valuation is around 22 times Wedbush's 2027 EPS estimate, which is near the low end of Carvana's valuation range over the past two years [2] Group 2: Investment Analysis - Wedbush believes the recent pullback in Carvana's stock price was excessive, creating an attractive entry point for investors [1] - The analysis indicates limited downside risk and a compelling risk/reward scenario at current levels [2]