23 analysts have shared their evaluations of Carvana CVNA during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 12 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 4 | 1 | 0 | 0 |
| 2M Ago | 3 | 4 | 3 | 0 | 0 |
| 3M Ago | 2 | 3 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $292.04, along with a high estimate of $365.00 and a low estimate of $220.00. This current average has increased by 3.91% from the previous average price target of $281.04.
Diving into Analyst Ratings: An In-Depth Exploration
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 |
|---|---|---|---|---|---|
| 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 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $240.00 | $250.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $365.00 | $350.00 |
| Chris Pierce | Needham | Maintains | Buy | $340.00 | $340.00 |
| Jeff Lick | Stephens & Co. | Maintains | Overweight | $300.00 | $300.00 |
| Jeff Lick | Stephens & Co. | Maintains | Overweight | $300.00 | $300.00 |
| Ronald Josey | Citigroup | Raises | Buy | $320.00 | $277.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $270.00 | $252.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $260.00 | $220.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $320.00 | $280.00 |
| Colin Sebastian | Baird | Raises | Neutral | $250.00 | $200.00 |
| Chris Pierce | Needham | Raises | Buy | $340.00 | $330.00 |
| Seth Basham | Wedbush | Maintains | Neutral | $250.00 | $250.00 |
| Jeff Lick | Stephens & Co. | Maintains | Overweight | $300.00 | $300.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $350.00 | $300.00 |
| Ronald Josey | Citigroup | Raises | Buy | $277.00 | $195.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $280.00 | $270.00 |
| Chris Pierce | Needham | Maintains | Buy | $330.00 | $330.00 |
| David Lantz | Wells Fargo | Lowers | Overweight | $275.00 | $300.00 |
| Jeff Lick | Stephens & Co. | Maintains | Overweight | $300.00 | $300.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Carvana. This insight gives a snapshot of analysts' perspectives on 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: Gaining insights, analysts provide estimates for the future value of Carvana's stock. This comparison reveals trends 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.
A Deep Dive into Carvana's Financials
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.
Positive Revenue Trend: Examining Carvana's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 46.33% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out 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 2.23%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Carvana's ROE stands out, surpassing industry averages. With an impressive ROE of 8.44%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Carvana's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.0%, the company showcases efficient use of assets and strong financial health.
Debt Management: Carvana's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.8, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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.
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