Download full report with analyst certification and important disclosures
Feb 9 2022, 06:45 GMT
Carvana (CVNA) has disrupted the sizable US used car market through its vertically integrated, online offering. A relatively underpenetrated vertical, competition is heating up. CVNA’s offering is ‘hypergrowth’, with an +87% 17/20 revenue CAGR and c.US$12bn revenue expected in FY21, now covering >80% of the US population. We forecast a +32% 21/24 revenue CAGR, levering a 0.67x CY24 revenue multiple for valuation. We initiate with a ‘Neutral’ recommendation and price target of US$185.