B. Riley FBR analyst Sameet Sinha recommends using the pullback in shares of Carvana as a buying opportunity. The insider share sales create a "temporary overhang," Sinha tells investors in a research note. Further, the analyst says the partnership between Lithia Motors (LAD) and Shift Technologies "will be very small initially and will take years to be competitive." He keeps a Buy rating on Carvana with a $76 price target.

Craig-Hallum lowered the firm's price target on Lithia & Driveway to $310 from $350 and keeps a Buy rating on the shares. While Q1 results were negatively impacted by operational integrations of recent acquisitions, the firm was encouraged to hear management's refined focus going forward is on harvesting synergies and accelerating its share repurchases while moderating the aggressive M&A pace. Network expansion and M&A have proven to be highly strategic, synergistic and accretive, so Craig-Hallum is supportive of the strategy, but thinks the setup for the stock is better during the synergy optimization period than during the acquisition/integration period.

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.

Reports Q1 revenue $8.56B, consensus $8.54B. New vehicle same store units grew by 3.6 %. Reports Q1 total vehicle gross profit per unit of $4,346, down $1,239. "In the first quarter, our teams responded as the industry continued to normalize inventories and profitability. We are committed to driving improvements across our business," said Bryan DeBoer, President and CEO. "Our model is diversified with our adjacencies maturing and on a path to profitability, as we continue to deliver the best experience for our customers. Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues."

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Lithia Motors is readying to cut hundreds of positions following a collapse in the supply of used vehicles after the COVID-19 pandemic, the Financial Times' Peter Campbell reports, citing people with knowledge of the matter. Lithia, which acquired Pendragon dealerships and its used car marketplace CarStore this year, plans to shutter CarStore and cut about 250 jobs across the UK. Reference Link