BMO Capital analyst Daniel Salmon raised his price target on Carvana to $48 after its Q2 results, saying the company's revenue trends remain "very strong". The analyst adds that the strong revenue growth rates can be sustained since Carvana only holds about a 0.2% market share, but keeps his Market Perform rating, noting that the path to profitability and cash flow generation remains unclear.

Bullish option flow detected in Carvana with 22,528 calls trading, 1.4x expected, and implied vol increasing over 1 point to 103.82%. May-24 75 calls and May-24 90 calls are the most active options, with total volume in those strikes near 5,200 contracts. The Put/Call Ratio is 0.41. Earnings are expected on May 1st.

JPMorgan raised the firm's price target on Carvana to $70 from $65 and keeps a Neutral rating on the shares. The analyst expects Carvana's Q1 EBITDA to come in at $180M, well ahead of consensus estimates of $122M, driven by strong volume growth, benefiting partially from partner inventory and strong commercial de-fleeting, as well as its ongoing efforts to return to growth while sustaining healthy unit economics. The firm continues to see meaningful upside to standing consensus estimates even beyond Q1. It believes Carvana's "ongoing strong revision trajectory should be enough to support shares."