In the preceding three months, 22 analysts have released ratings for Carvana CVNA, presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 6 | 11 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 5 | 0 | 0 |
| 2M Ago | 1 | 2 | 1 | 0 | 0 |
| 3M Ago | 2 | 2 | 5 | 1 | 0 |
Analysts have recently evaluated Carvana and provided 12-month price targets. The average target is $178.45, accompanied by a high estimate of $250.00 and a low estimate of $110.00. Marking an increase of 23.92%, the current average surpasses the previous average price target of $144.00.
Diving into Analyst Ratings: An In-Depth Exploration
A clear picture of Carvana's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Zachary Fadem | Wells Fargo | Raises | Overweight | $250.00 | $175.00 |
| 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: 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Carvana's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Carvana's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Carvana analyst ratings.
All You Need to Know 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.
Carvana: Delving into Financials
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.
Positive Revenue Trend: Examining Carvana's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.89% as of 30 June, 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 net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.53%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Carvana's ROE stands out, surpassing industry averages. With an impressive ROE of 4.42%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.25%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Carvana's debt-to-equity ratio is notably higher than the industry average. With a ratio of 11.69, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Understanding the Relevance of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
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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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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