Needham names Carvana top pick, flags bullish catalysts for EV stocks

Needham & Company maintained its bullish stance on Carvana, retaining the online used-car retailer as its top pick for November, citing its long-term profitable growth prospects and an attractive valuation. 

Needham maintained its Buy rating and $100 price target on Carvana, following a reduction from $120 in late October, citing higher interest rates.

In its November transportation technology industry update, analyst Chris Pierce said the market continues to underestimate Carvana's ability to deliver sustainable, profitable growth relative to its valuation. The brokerage said it sees a disconnect between the company's durable long-term growth potential and what it considers an undemanding valuation.

Needham also identified potential near-term catalysts for several companies, including BETA Technologies, ChargePoint, Joby Aviation, CarMax and Rivian.

BETA Technologies and ChargePoint received improved rankings compared with October. Needham moved BETA's valuation assessment into the green category, reflecting growing confidence in its opportunities in conventional takeoff and landing (CTOL) and vertical takeoff and landing (VTOL) aircraft markets.

ChargePoint's near-term investment outlook also improved, according to the brokerage.

Meanwhile, Needham lowered its assessments of SAH and Aurora Innovation, citing weaker earnings visibility at SAH and production execution challenges at Aurora.

The November update reflects Needham's latest monthly rankings across its transportation technology coverage, with Carvana remaining its preferred investment amid expectations for sustained profitable growth.