Throughout the last three months, 21 analysts have evaluated Carvana CVNA, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 5 | 11 | 1 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 1 | 1 | 3 | 0 | 0 |
| 2M Ago | 1 | 2 | 1 | 0 | 0 |
| 3M Ago | 2 | 2 | 5 | 1 | 0 |
Analysts have set 12-month price targets for Carvana, revealing an average target of $175.05, a high estimate of $230.00, and a low estimate of $110.00. This current average reflects an increase of 22.95% from the previous average price target of $142.37.
Diving into Analyst Ratings: An In-Depth Exploration
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 |
|---|---|---|---|---|---|
| Michael Montani | Evercore ISI Group | Raises | In-Line | $182.00 | $178.00 |
| John Colantuoni | Jefferies | Raises | Hold | $185.00 | $150.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $230.00 | $185.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $210.00 | $185.00 |
| Seth Basham | Wedbush | Raises | Neutral | $175.00 | $150.00 |
| Ronald Josey | Citigroup | Raises | Neutral | $195.00 | $125.00 |
| Michael Montani | Evercore ISI Group | Maintains | In-Line | $178.00 | $178.00 |
| Michael McGovern | B of A Securities | Announces | Buy | $185.00 | - |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $157.00 | $142.00 |
| Jeff Lick | Stephens & Co. | Announces | Overweight | $190.00 | - |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $200.00 | $200.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $142.00 | $150.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $200.00 | $150.00 |
| John Blackledge | TD Cowen | Raises | Hold | $148.00 | $110.00 |
| Marvin Fong | BTIG | Raises | Buy | $188.00 | $155.00 |
| Adam Jonas | Morgan Stanley | Raises | Underweight | $110.00 | $75.00 |
| Alexander Potter | Piper Sandler | Raises | Neutral | $151.00 | $105.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $155.00 | $110.00 |
| Zachary Fadem | Wells Fargo | Raises | Overweight | $175.00 | $77.00 |
| Chris Pierce | Needham | Raises | Buy | $200.00 | $160.00 |
| Seth Basham | Wedbush | Maintains | Neutral | $120.00 | $120.00 |
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: 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 predict movements in price targets, offering estimates for Carvana's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Carvana's market position. Stay informed and make data-driven decisions with the assistance of 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.
A Deep Dive into Carvana's Financials
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Carvana's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 14.89%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 0.53%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Carvana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.42% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Carvana's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.25%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Carvana's debt-to-equity ratio stands notably higher than the industry average, reaching 11.69. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
The Basics of Analyst Ratings
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 publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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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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