Wells Fargo analyst Zachary Fadem attributed last week's volatility in Carvana (CVNA) shares to a lack of near-term catalysts coming out of its analyst day, investor concerns around Q4 volumes and the announcement that CarMax (KMX) is expanding its Omnichannel pilot in Atlanta. However, after hosting Carvana's VP of Investor Relations at the firm's Technology Summit, Fadem said he remains constructive on the long-term outlook and views the stock among the most compelling growth stories across his retail hardlines coverage. While CarMax's announcement "comes with understandable concern," Fadem views it as "a validation" of the Carvana model and sees Carvana's first mover advantage, customer-centric model and nation-wide network as competitive advantages. He maintains an Outperform rating and $72 price target on Carvana shares.

Jefferies lowered the firm's price target on Carvana to $80 from $85 and keeps a Hold rating on the shares. The firm expects "another solid EBITDA print" as Carvana prioritizes unit economics over unit growth, the analyst tells investors in a preview note for the U.S. Internet group.