In a fresh bullish call on Carvana (CVNA), Wedbush Securities is urging investors to “take advantage” of the recent weakness, upgrading CVNA stock from “Neutral” to “Outperform” and raising the 12-month price target to $400. Analyst Scott Devitt says the selloff — driven by CarMax’s (KMX) soft results and broader credit-market concerns — has pushed CVNA’s valuation near the low end of its two-year range.
With management delivering several quarters of strong growth, Wedbush believes Carvana will surpass CarMax in used-car unit volume sooner than expected, reach 3 million annual retail sales by 2033, and expand adjusted EBITDA margins to 12% by 2027.
