20 analysts have expressed a variety of opinions on Carvana (NYSE:CVNA) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 6 | 11 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 2 | 4 | 6 | 0 | 0 |
| 3M Ago | 1 | 2 | 3 | 0 | 0 |
Analysts have set 12-month price targets for Carvana, revealing an average target of $220.85, a high estimate of $320.00, and a low estimate of $157.00. This current average reflects an increase of 26.4% from the previous average price target of $174.72.
Investigating Analyst Ratings: An Elaborate Study
An in-depth analysis of recent analyst actions unveils 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 |
|---|---|---|---|---|---|
| Michael Montani | Evercore ISI Group | Raises | In-Line | $245.00 | $240.00 |
| Adam Jonas | Morgan Stanley | Raises | Equal-Weight | $260.00 | $110.00 |
| Nicholas Jones | JMP Securities | Raises | Market Outperform | $320.00 | $200.00 |
| Alexander Potter | Piper Sandler | Raises | Neutral | $225.00 | $151.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $300.00 | $230.00 |
| Chris Pierce | Needham | Raises | Buy | $300.00 | $200.00 |
| Colin Sebastian | Baird | Raises | Neutral | $240.00 | $160.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $190.00 | $186.00 |
| Zachary Fadem | Wells Fargo | Raises | Overweight | $250.00 | $175.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $182.00 | $178.00 |
| John Colantuoni | Jefferies | Raises | Hold | $185.00 | $150.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $230.00 | $185.00 |
| Michael McGovern | B of A Securities | Raises | Buy | $210.00 | $185.00 |
| Seth Basham | Wedbush | Raises | Neutral | $175.00 | $150.00 |
| Ronald Josey | Citigroup | Raises | Neutral | $195.00 | $125.00 |
| Michael Montani | Evercore ISI Group | Maintains | In-Line | $178.00 | $178.00 |
| Michael McGovern | B of A Securities | Announces | Buy | $185.00 | - |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $157.00 | $142.00 |
| Jeff Lick | Stephens & Co. | Announces | Overweight | $190.00 | - |
| Nicholas Jones | JMP Securities | Maintains | Market Outperform | $200.00 | $200.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Carvana. This information offers 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: Analysts explore the dynamics of price targets, providing estimates for the future value of Carvana's stock. This examination reveals shifts 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.
Get to Know Carvana Better
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.
Unraveling the Financial Story of Carvana
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Carvana displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 31.81%. This indicates a notable 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 excels beyond industry benchmarks, reaching 2.33%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Carvana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.95% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Carvana's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.17%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a high debt-to-equity ratio of 10.06, Carvana faces challenges in effectively managing its debt levels, indicating potential financial strain.
Analyst Ratings: What Are They?
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.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
