Shares of Carvana Co (CVNA  ) were climbing in early trading on Thursday.

  • Piper Sandler analyst Alexander Potter upgraded the rating from Neutral to Overweight, while keeping the price target unchanged at $225.
  • BofA Securities analyst Justin Post reaffirmed a Buy rating and price target of $220.
Piper Sandler: Carvana is better insulated from tariff risks than other companies, Potter said in the upgrade note. While used car sales are impacted by macro uncertainty, the company "can grow aggressively, even if the used car market weakens," he added.

The company's retail unit sales could rise from 416,000 in 2024 to eventually exceed 3 million, the analyst stated. "We would use the recent sell-off to accumulate CVNA shares," he further wrote.

BofA Securities: Amazon.com Inc (AMZN  ) is preparing to enter the used-cars space. Amazon Auto's General Manager Fan Jin said in a podcast earlier this week that the offering would "accommodate trade ins" through an in-person experience rather than entirely online like Carvana, Post said. The move would benefit the entire online auto sector, including Carvana, he added.

This does not represent any direct competition for Carvana, as Amazon Auto's selection is limited to Hyundais, the analyst stated. Third-party listings only and lack of vertical integration "leads to inconsistent UX," he further wrote.

Price Action: Shares of Carvana had risen by 9.04% to $192.00.67 at the time of publication on Thursday.