In the last three months, 18 analysts have published ratings on Carvana (NYSE:CVNA), offering a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 6 | 12 | 0 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 3 | 6 | 0 | 0 |
| 3M Ago | 0 | 1 | 5 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Carvana, presenting an average target of $104.72, a high estimate of $150.00, and a low estimate of $65.00. Witnessing a positive shift, the current average has risen by 25.19% from the previous average price target of $83.65.
Analyzing Analyst Ratings: A Detailed Breakdown
A comprehensive examination of how financial experts perceive Carvana is derived from recent analyst actions. The following is a detailed summary of 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 Montani | Evercore ISI Group | Raises | In-Line | $118.00 | $111.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $150.00 | $130.00 |
| 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 |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Carvana compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Carvana's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Carvana's market position. Stay informed and make data-driven decisions with the assistance of 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.
Key Indicators: Carvana's Financial Health
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Over the 3 months period, Carvana showcased positive performance, achieving a revenue growth rate of 17.46% as of 31 March, 2024. This reflects a substantial increase in the company's 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 0.91%, the company showcases strong profitability and effective cost control.
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 excels beyond industry benchmarks, reaching 0.4%. This signifies efficient management of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 22.27, caution is advised due to increased financial risk.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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.
