In the latest quarter, 21 analysts provided ratings for Carvana (NYSE:CVNA), showcasing a mix of bullish and bearish perspectives.
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 | 6 | 9 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 2 | 0 | 0 |
| 2M Ago | 4 | 5 | 3 | 0 | 0 |
| 3M Ago | 1 | 3 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $305.48, a high estimate of $440.00, and a low estimate of $200.00. Marking an increase of 7.37%, the current average surpasses the previous average price target of $284.52.
Understanding Analyst Ratings: A Comprehensive Breakdown
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 |
|---|---|---|---|---|---|
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $440.00 | $275.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $305.00 | $295.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $295.00 | $290.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $375.00 | $325.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $340.00 | $315.00 |
| Adam Jonas | Morgan Stanley | Raises | Overweight | $290.00 | $280.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $325.00 | $295.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $280.00 | $245.00 |
| Seth Basham | Wedbush | Raises | Neutral | $290.00 | $260.00 |
| Ronald Josey | Citigroup | Raises | Buy | $325.00 | $280.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $295.00 | $290.00 |
| Brad Erickson | RBC Capital | Raises | Outperform | $340.00 | $320.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $315.00 | $230.00 |
| David Lantz | Wells Fargo | Raises | Overweight | $310.00 | $290.00 |
| Colin Sebastian | Baird | Raises | Neutral | $275.00 | $200.00 |
| Chris Pierce | Needham | Maintains | Buy | $340.00 | $340.00 |
| David Lantz | Wells Fargo | Lowers | Overweight | $290.00 | $310.00 |
| Alexander Potter | Piper Sandler | Raises | Overweight | $230.00 | $225.00 |
| Nicholas Jones | JMP Securities | Lowers | Market Outperform | $275.00 | $340.00 |
| Ronald Josey | Citigroup | Lowers | Buy | $280.00 | $320.00 |
| Colin Sebastian | Baird | Lowers | Neutral | $200.00 | $250.00 |
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: Delving into movements, analysts provide estimates for the future value of Carvana's stock. This analysis reveals shifts in analysts' expectations over time.
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.
Unveiling the Story Behind 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 Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Over the 3M period, Carvana showcased positive performance, achieving a revenue growth rate of 38.26% as of 31 March, 2025. This reflects 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 5.1%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Carvana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.63% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.49%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 4.02.
Understanding the Relevance 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 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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