Wells Fargo has maintained its Overweight rating on Carvana Co. (NYSE: NYSE:) and increased its price target to $250.00, up from the previous target of $175.00.

The firm cited several reasons for the optimistic outlook on the online used car retailer, including Carvana’s year-to-date stock performance, which has significantly outpaced the broader market, with shares climbing 273% compared to the S&P 500’s 23% increase.

The analyst from Wells Fargo highlighted that despite the already substantial gains, there appears to be further potential for Carvana’s stock with improving fundamentals and a long-term opportunity driven by growing profitability among other factors.

The firm believes that Carvana is successfully gaining market…