Carvana (NYSE:CVNA) shares jumped more than 7% intra-day on Monday after Evercore ISI analysts raised their price target for the company to $157, up from $142, while maintaining an In Line rating.

The analysts initiated a Positive Tactical Trading call on Carvana, anticipating the stock could trade in the $155-$160 range leading up to the company’s third-quarter earnings release. their optimism follows a constructive meeting at Carvana’s headquarters and several upcoming catalysts that could boost the stock. These include the State of the Used Car Industry event with Cox Auto on September 16, CarMax’s (KMX) results on September 26, CarMax’s Investor Day on October 15, and Carvana’s Q3 earnings report in late October or early November.

The analysts expect favorable commentary around Carvana’s consumer base, margin improvement strategies, and long-term growth outlook for market share and profitability. While investor concerns have been raised over credit quality, particularly following commentary from ALLY Financial, the analysts believe Carvana is less likely to face significant credit issues, thanks to tightened lending practices implemented last year. Additionally, Carvana continues to lead in web traffic generation, outpacing peers who have seen a decline.