Carvana Inventory Can Strike $200: Portfolio Manager

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Target price: $200.00

Present cost: $83.53

Schedule: 2-5 years

Investment Thesis

  • The U.S. Car or truck industry is quite big, extremely fragmented, and due for interruption.
  • Carvana (CVNA) created a vertically incorporated, online platform for purchasing and selling vehicles providing you with an even more seamless client experience, vast car selection, and reduced costs.
  • The CEO is business creator, and there’s significant inside ownership.
  • The self-reinforcing flywheel will continue to build, helping grow its inventory selection, logistics and transportation network, and data analytics as Carvana builds its scale advantages.
  • Present styles reveal Carvana quickly gaining significant share of the market. When volumes and running margins achieve scale, and presuming market that is reasonable, present valuation appears really appealing predicated on cash-flow potential. Read the rest of this entry