Ratings for Carvana CVNA were provided by 12 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
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 | 0 | 2 | 8 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 3 | 0 | 0 |
| 2M Ago | 0 | 1 | 4 | 2 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $69.58, a high estimate of $90.00, and a low estimate of $45.00. This upward trend is apparent, with the current average reflecting a 34.98% increase from the previous average price target of $51.55.
Investigating Analyst Ratings: An Elaborate Study
An in-depth analysis of recent analyst actions unveils how financial experts perceive Carvana. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Rajat Gupta | JP Morgan | Raises | Neutral | $70.00 | $65.00 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $80.00 | - |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $77.00 | $78.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $78.00 | $75.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $75.00 | $68.00 |
| John Colantuoni | Jefferies | Raises | Hold | $85.00 | $30.00 |
| Brad Erickson | RBC Capital | Raises | Sector Perform | $90.00 | $45.00 |
| Adam Jonas | Morgan Stanley | Raises | Underweight | $45.00 | $32.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $80.00 | $60.00 |
| Brad Erickson | RBC Capital | Raises | Underperform | $45.00 | $24.00 |
| Seth Basham | Wedbush | Raises | Neutral | $60.00 | $50.00 |
| Seth Basham | Wedbush | Raises | Neutral | $50.00 | $40.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Carvana. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Carvana's stock. This examination reveals shifts in analysts' expectations over time.
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.
About 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.
Unraveling the Financial Story of Carvana
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Decline in Revenue: Over the 3 months period, Carvana faced challenges, resulting in a decline of approximately -14.56% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -4.7%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Carvana's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -39.18%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.62%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Carvana's debt-to-equity ratio stands notably higher than the industry average, reaching 27.6. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Significance of Analyst Ratings Explained
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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