Carvana's (CVNA) logistics optimization, workflow standardization, and AI-driven labor management initiatives reinforce confidence in the company's ability to ramp operations profitably, RBC Capital Markets said in a Thursday report.
During a recent facility tour for analysts in Ohio, the company showcased its cost efficiency roadmap, including the proprietary CARLI software system to manage vehicle processing; streamlined reconditioning processes, and AI-enabled training systems, RBC said.
AI-powered labor allocation that dynamically adjusts staffing midday based on throughput predictions should help address the Q4 bottlenecks, which impacted retail operations, the analysts said.
RBC reiterated its outperform rating on Carvana, with a price target of $92.
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