Core Viewpoint - Argus initiated coverage of Carvana (NYSE: CVNA) with a Buy rating and a price target of $500, citing competitive advantages and a favorable growth outlook [1] Company Analysis - Carvana's e-commerce platform for buying and selling used vehicles offers advantages over traditional dealerships in vehicle selection, pricing, quality, and overall customer experience [2] - The company has a history of strong revenue growth, a recent return to profitability, and improving operating trends in its latest results [2] - Management is making progress toward achievable sales and earnings objectives, and the balance sheet is characterized as clean [3] Technical Analysis - The stock has exhibited a bullish pattern of higher highs and higher lows since 2023 [3] Valuation and Market Context - Carvana shares are noted to be more expensive than comparable companies, raising valuation concerns [4] - Despite the valuation concerns, the company's growth runway appears compelling enough to justify the premium valuation, particularly in the near term and within a bullish market environment [4]