Used Car Seller Carvana On Road To $15B Revenue By 2025 As Unit Growth Accelerates: BofA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Should l Buy CVNA?
Source: Benzinga
Analyst Rating and Market Position: BofA Securities analyst Michael McGovern has reinstated coverage on Carvana Co. with a Buy rating and a price target of $185, citing the company's strong position for long-term growth in the fragmented used car market.
Financial Projections: McGovern anticipates Carvana's revenue to reach $15.45 billion and EBITDA of $1.50 billion by 2025, slightly exceeding market estimates, with expectations of continued recovery in used car sales as interest rates decline.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 344.140
Low
360.00
Averages
475.88
High
550.00
Current: 344.140
Low
360.00
Averages
475.88
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Real-Time Order Flow Analysis: Order flow analytics examine buying and selling trends from both retail and institutional traders by analyzing volume, timing, and order size, providing deeper insights into stock price behavior and market sentiment, enabling traders to make informed decisions.
- CVNA Price Performance: At the time of the Power Inflow signal, CVNA was priced at $338.2, and it reached an intraday high of $351.66, reflecting a 3.98% increase, which demonstrates the effectiveness of the signal and market response.
- Investment Risk Disclaimer: While the analysis based on order flow data offers market insights, the article emphasizes the risks of investing, including the potential loss of principal, and advises investors to consult licensed financial advisors before making investment decisions.
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Bragar Eagel & Squire Investigates Potential Claims Against Carvana
- Investigation Background: Bragar Eagel & Squire is investigating whether Carvana has violated federal securities laws, prompted by a short seller report from Gotham City Research alleging that Carvana's profitability relies on undisclosed related-party transactions, which could undermine investor confidence.
- Profitability Concerns: The report claims that DriveTime has burned over $1 billion in cash while leveraging up to 20x to 40x EBITDA to support Carvana's earnings, suggesting that such financial maneuvers may distort Carvana's profitability metrics and impact its stock price.
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- Investor Action: Bragar Eagel & Squire encourages all investors who suffered losses in Carvana to reach out to discuss their legal rights and potential claims, highlighting the firm's commitment to protecting investor interests.
See More
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- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
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- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
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- Positive Job Data: Recent U.S. employment figures indicate a rise in new jobs, and while inflation eases, the overall market remains volatile, reflecting investor concerns about future economic prospects that could impact stock performance.
- Mixed Industry Results: Automakers reported mixed earnings, with some industrial stocks outperforming the broader market; however, overall equity demand remains capped, indicating a growing risk-off sentiment among investors.
- AI Panic Trade: The launch of a new freight efficiency platform by an AI firm has spooked markets, leading to sharp declines in traditionally resilient trucking and logistics stocks, as fears grow over the vulnerability of labor-intensive business models to automation.
- Real Estate Impacted: The real estate sector and other old-economy industries have also been hit, as traders express unease over potential AI-driven disruptions, further exacerbating market uncertainty.
See More
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- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
See More
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- Monetary Policy Balance: As Fed Chair Powell's tenure approaches its end, the market is keenly focused on his performance in balancing maximum employment and stable prices, especially with the upcoming release of the latest meeting minutes, marking one of his final meetings in office.
- Interest Rate Challenges: During Powell's leadership, the Fed has navigated emergency interventions and an aggressive rate-hiking cycle, with the benchmark rate rising from near zero to over 5%; despite initially viewing inflation as 'transitory,' achieving a 'soft landing' for the economy will be a key part of his legacy.
- Market Reaction Expectations: Investors are optimistic about the upcoming personal consumption expenditure data, although the cooler-than-expected CPI could impact the Fed's interest rate outlook, with markets currently pricing in only two quarter-point cuts for the year.
- Industry Dynamics Observation: As concerns over AI disruption grow, stocks in software, finance, and real estate have seen declines, prompting investors to search for the next potentially affected sectors, with Walmart and Deere's upcoming earnings reports likely to be focal points for market attention.
See More
Analysis of Power Inflow Signal and CVNA Performance
- Power Inflow Signal: The Power Inflow alert, developed by TradePulse, is issued within the first two hours of trading, indicating a significant shift in order flow that suggests strong buying activity, thus signaling a potential bullish price movement for the day, making it a strategic entry point for active traders.
- Real-Time Order Flow Analysis: Order flow analytics examine buying and selling trends from both retail and institutional traders by analyzing volume, timing, and order size, providing deeper insights into stock price behavior and market sentiment, enabling traders to make informed decisions.
- CVNA Price Performance: At the time of the Power Inflow signal, CVNA was priced at $338.2, and it reached an intraday high of $351.66, reflecting a 3.98% increase, which demonstrates the effectiveness of the signal and market response.
- Investment Risk Disclaimer: While the analysis based on order flow data offers market insights, the article emphasizes the risks of investing, including the potential loss of principal, and advises investors to consult licensed financial advisors before making investment decisions.
See More
Bragar Eagel & Squire Investigates Potential Claims Against Carvana
- Investigation Background: Bragar Eagel & Squire is investigating whether Carvana has violated federal securities laws, prompted by a short seller report from Gotham City Research alleging that Carvana's profitability relies on undisclosed related-party transactions, which could undermine investor confidence.
- Profitability Concerns: The report claims that DriveTime has burned over $1 billion in cash while leveraging up to 20x to 40x EBITDA to support Carvana's earnings, suggesting that such financial maneuvers may distort Carvana's profitability metrics and impact its stock price.
- Stock Price Volatility: On January 28, 2026, Carvana's shares plummeted by $67.68, or approximately 14.2%, from $477.72 on January 27 to $410.04, reflecting market concerns regarding the company's financial health and the sustainability of its earnings.
- Investor Action: Bragar Eagel & Squire encourages all investors who suffered losses in Carvana to reach out to discuss their legal rights and potential claims, highlighting the firm's commitment to protecting investor interests.
See More
