UBS initiates coverage of Carvana with a 'Buy' rating, citing potential for market-share gains and strong growth prospects.

UBS has initiated coverage of Carvana with a "Buy" rating, citing its potential to capture outsized share in the online used-car market. The brokerage sets a 12-month price target of $450, about 20% above the last close. UBS estimates Carvana's EBITDA growth rate at 25% over the decade and sees a path for the company to expand its share to 8% by 2030. The firm values the company at 29 times its 2027 EV/EBITDA, calling the stock's risk-reward "attractive" with 20% upside in the base case and 48% in the upside scenario.