Carvana CVNA has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 4 | 2 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 3 | 2 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $64.38, with a high estimate of $90.00 and a low estimate of $45.00. This current average has increased by 60.39% from the previous average price target of $40.14.
Diving into Analyst Ratings: An In-Depth Exploration
In examining recent analyst actions, we gain insights into 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 |
|---|---|---|---|---|---|
| John Colantuoni | Jefferies | Raises | Hold | $85.00 | $30.00 |
| Brad Erickson | RBC Capital | Raises | Sector Perform | $90.00 | $45.00 |
| Adam Jonas | Morgan Stanley | Raises | Underweight | $45.00 | $32.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $80.00 | $60.00 |
| Brad Erickson | RBC Capital | Raises | Underperform | $45.00 | $24.00 |
| Seth Basham | Wedbush | Raises | Neutral | $60.00 | $50.00 |
| Seth Basham | Wedbush | Raises | Neutral | $50.00 | $40.00 |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $60.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Carvana. This information provides 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: Gaining insights, analysts provide estimates for the future value of Carvana's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Carvana's market position. Stay informed and make well-informed 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.
Financial Insights: Carvana
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Negative Revenue Trend: Examining Carvana's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -14.56% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Carvana's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -4.7%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Carvana's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -39.18%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Carvana's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.62%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Carvana's debt-to-equity ratio is notably higher than the industry average. With a ratio of 27.6, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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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