Carvana CVNA underwent analysis by 15 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 7 | 4 | 0 | 0 |
| Last 30D | 1 | 1 | 2 | 0 | 0 |
| 1M Ago | 0 | 2 | 1 | 0 | 0 |
| 2M Ago | 2 | 3 | 0 | 0 | 0 |
| 3M Ago | 1 | 1 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $295.13, a high estimate of $350.00, and a low estimate of $245.00. This upward trend is apparent, with the current average reflecting a 7.06% increase from the previous average price target of $275.67.
Interpreting Analyst Ratings: A Closer Look
The perception of Carvana by financial experts is analyzed through recent analyst actions. 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 |
|---|---|---|---|---|---|
| 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 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $320.00 | $320.00 |
| Chris Pierce | Needham | Raises | Buy | $330.00 | $300.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $245.00 | $240.00 |
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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Carvana's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
For valuable insights into Carvana's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.
Carvana: A Financial Overview
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.
Revenue Growth: Carvana's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 31.81%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Carvana's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.33% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 14.95%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.17%, 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 10.06, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
How Are Analyst Ratings Determined?
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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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