Expert Outlook: Carvana Through The Eyes Of 18 Analysts

Analysts' ratings for Carvana CVNA over the last quarter vary from bullish to bearish, as provided by 18 analysts.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 5 13 0 0
Last 30D 0 1 0 0 0
1M Ago 0 1 0 0 0
2M Ago 0 3 10 0 0
3M Ago 0 0 3 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $98.72, a high estimate of $150.00, and a low estimate of $65.00. This current average has increased by 31.21% from the previous average price target of $75.24.

price target chart

Decoding Analyst Ratings: A Detailed Look

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
Nicholas Jones JMP Securities Raises Market Outperform $150.00 $135.00
Nicholas Jones JMP Securities Maintains Market Outperform $135.00 $135.00
Nicholas Jones JMP Securities Raises Market Outperform $135.00 $80.00
John Blackledge TD Cowen Raises Hold $110.00 $70.00
Brad Erickson RBC Capital Raises Sector Perform $130.00 $90.00
Zachary Fadem Wells Fargo Raises Equal-Weight $77.00 $60.00
Seth Basham Wedbush Raises Neutral $120.00 $80.00
Rajat Gupta JP Morgan Raises Overweight $130.00 $70.00
Colin Sebastian Baird Raises Neutral $110.00 $65.00
John Blackledge TD Cowen Raises Hold $70.00 $58.00
Seth Basham Wedbush Raises Neutral $80.00 $60.00
Colin Sebastian Baird Raises Neutral $65.00 $60.00
Rajat Gupta JP Morgan Raises Neutral $70.00 $65.00
Nicholas Jones JMP Securities Maintains Market Outperform $80.00 -
Michael Montani Evercore ISI Group Lowers In-Line $77.00 $78.00
Michael Montani Evercore ISI Group Raises In-Line $78.00 $75.00
Michael Montani Evercore ISI Group Raises In-Line $75.00 $68.00
John Colantuoni Jefferies Raises Hold $85.00 $30.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Carvana. This information provides a snapshot of how analysts perceive 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: 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.

Discovering Carvana: A Closer Look

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.

Understanding the Numbers: Carvana's Finances

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Carvana's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 17.46%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Carvana's net margin excels beyond industry benchmarks, reaching 0.91%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 10.53%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Carvana's ROA stands out, surpassing industry averages. With an impressive ROA of 0.4%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Carvana's debt-to-equity ratio stands notably higher than the industry average, reaching 22.27. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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