Analysts' ratings for Carvana CVNA over the last quarter vary from bullish to bearish, as provided by 22 analysts.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 7 | 13 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 3 | 0 | 0 |
| 2M Ago | 0 | 3 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 10 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $114.86, a high estimate of $160.00, and a low estimate of $65.00. Observing a 26.57% increase, the current average has risen from the previous average price target of $90.75.
Deciphering Analyst Ratings: An In-Depth Analysis
The analysis of recent analyst actions sheds light on the perception of Carvana by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Marvin Fong | BTIG | Announces | Buy | $155.00 | - |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $150.00 | $150.00 |
| Chris Pierce | Needham | Announces | Buy | $160.00 | - |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $135.00 | $118.00 |
| Seth Basham | Wedbush | Maintains | Neutral | $120.00 | $120.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $118.00 | $111.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $150.00 | $130.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $150.00 | $135.00 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $135.00 | $135.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $135.00 | $80.00 |
| John Blackledge | TD Cowen | Raises | Hold | $110.00 | $70.00 |
| Brad Erickson | RBC Capital | Raises | Sector Perform | $130.00 | $90.00 |
| Zachary Fadem | Wells Fargo | Raises | Equal-Weight | $77.00 | $60.00 |
| Seth Basham | Wedbush | Raises | Neutral | $120.00 | $80.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $130.00 | $70.00 |
| Colin Sebastian | Baird | Raises | Neutral | $110.00 | $65.00 |
| John Blackledge | TD Cowen | Raises | Hold | $70.00 | $58.00 |
| Seth Basham | Wedbush | Raises | Neutral | $80.00 | $60.00 |
| Colin Sebastian | Baird | Raises | Neutral | $65.00 | $60.00 |
| Rajat Gupta | JP Morgan | Raises | Neutral | $70.00 | $65.00 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $80.00 | $80.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $77.00 | $78.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Carvana. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Carvana's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Carvana's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Carvana analyst ratings.
Delving into Carvana's Background
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.
Financial Milestones: Carvana's Journey
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Carvana's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 17.46%. This signifies 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.91%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Carvana's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 10.53%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.4%, the company showcases effective utilization of assets.
Debt Management: Carvana's debt-to-equity ratio is notably higher than the industry average. With a ratio of 22.27, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
How Are Analyst Ratings Determined?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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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