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Wall Street Journal19 Analysts Assess Carvana: What You Need To Know
In the last three months, 19 analysts have published ratings on Carvana (NYSE:CVNA), offering a diverse range of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 11 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 3 | 5 | 1 | 0 | 0 |
| 3M Ago | 2 | 4 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $291.05, a high estimate of $375.00, and a low estimate of $200.00. Observing a 1.75% increase, the current average has risen from the previous average price target of $286.05.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Carvana is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael McGovern | B of A Securities | Raises | Buy | $375.00 | $325.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $340.00 | $315.00 |
| Adam Jonas | Morgan Stanley | Raises | Overweight | $290.00 | $280.00 |
| Ronald Josey | Citigroup | Raises | Buy | $325.00 | $280.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $295.00 | $290.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $340.00 | $320.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $315.00 | $230.00 |
| David Lantz | Wells Fargo | Raises | Overweight | $310.00 | $290.00 |
| Colin Sebastian | Baird | Raises | Neutral | $275.00 | $200.00 |
| Chris Pierce | Needham | Maintains | Buy | $340.00 | $340.00 |
| David Lantz | Wells Fargo | Lowers | Overweight | $290.00 | $310.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $230.00 | $225.00 |
| Nicholas Jones | JMP Securities | Lowers | Market Outperform | $275.00 | $340.00 |
| Ronald Josey | Citigroup | Lowers | Buy | $280.00 | $320.00 |
| Colin Sebastian | Baird | Lowers | Neutral | $200.00 | $250.00 |
| Rajat Gupta | JP Morgan | Lowers | Overweight | $325.00 | $365.00 |
| Adam Jonas | Morgan Stanley | Raises | Overweight | $280.00 | $260.00 |
| Alexander Potter | Piper Sandler | Maintains | Overweight | $225.00 | $225.00 |
| Michael McGovern | B of A Securities | Lowers | Buy | $220.00 | $270.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Carvana. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Carvana's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Carvana's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Carvana analyst ratings.
Unveiling the Story Behind Carvana
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
Carvana: A Financial Overview
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Over the 3M period, Carvana showcased positive performance, achieving a revenue growth rate of 38.26% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Carvana's net margin is impressive, surpassing industry averages. With a net margin of 5.1%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Carvana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.63% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Carvana's ROA stands out, surpassing industry averages. With an impressive ROA of 2.49%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Carvana's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 4.02.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.