Carvana Joins S&P 500: Carvana Co. will be added to the S&P 500 index as part of its quarterly rebalance, alongside CRH Plc and Comfort Systems USA, while LKQ Corp, Solstice Advanced Materials, and Mohawk Industries will be removed.
Stock Performance Surge: Following the announcement, Carvana's stock surged by 9.81% in premarket trading, reflecting strong investor interest and confidence in the company's recent performance.
Unexpected Inclusion: Carvana's addition to the index surprised many investors who expected larger tech companies or major crypto entities to be included, highlighting the company's strong growth potential and recent upgrades from analysts.
Positive Market Conditions: The company's business model benefits from lower borrowing costs, particularly for subprime borrowers, and the anticipation of lower interest rates from the Federal Reserve has further improved its outlook, with a year-to-date stock increase of 100.33%.
Wall Street analysts forecast CVNA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 431.65 USD with a low forecast of 360.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast CVNA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 431.65 USD with a low forecast of 360.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
3 Hold
0 Sell
Strong Buy
Current: 460.880
Low
360.00
Averages
431.65
High
500.00
Current: 460.880
Low
360.00
Averages
431.65
High
500.00
Morgan Stanley
Andrew Percoco
Overweight
maintain
$450 -> $750
Al Analysis
2026-01-08
Reason
Morgan Stanley
Andrew Percoco
Price Target
$450 -> $750
Al Analysis
2026-01-08
maintain
Overweight
Reason
Morgan Stanley analyst Andrew Percoco maintained an Overweight rating and $450 price target on Carvana, but boosted its bull case on the stock to $750, noting that the company's acquisition of four new car dealerships in December signal to the firm that Carvana is "readily expanding" its total addressable market, or TAM, beyond used cars. Morgan Stanley added that Carvana's proprietary software and physical infrastructure can enable advancements in both autonomous vehicles and electric vehicles.
Wedbush
Scott Devitt
Outperform
maintain
$400 -> $500
2025-12-19
Reason
Wedbush
Scott Devitt
Price Target
$400 -> $500
2025-12-19
maintain
Outperform
Reason
Wedbush analyst Scott Devitt raised the firm's price target on Carvana to $500 from $400 and keeps an Outperform rating on the shares. Consumer internet companies delivered strong returns in 2025, averaging 23% across 24 covered companies versus 19% for the NASDAQ, the analyst tells investors in a research note. In 2026, performance is expected to diverge as investors weigh factors such as AV disruption, AI monetization, ongoing investment cycles, and growing adoption of agentic AI, the firm says.
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BofA
Underperform
maintain
$27 -> $31
2025-12-19
Reason
BofA
Price Target
$27 -> $31
2025-12-19
maintain
Underperform
Reason
BofA raised the firm's price target on CarMax (KMX) to $31 from $27 and keeps an Underperform rating on the shares after the company reported "soft" fiscal Q3 results and provided a Q4 outlook that plans for the company to accelerate sales trends by increasing marketing spend and leaning into pricing. The firm, while "constructive" on CarMax's recovery plan and seeming lack of pressure in subprime, sees share loss to Carvana (CVNA) and the ongoing management transition as likely to weigh on sentiment.
Argus
NULL -> Buy
initiated
$500
2025-12-15
Reason
Argus
Price Target
$500
2025-12-15
initiated
NULL -> Buy
Reason
Argus initiated coverage of Carvana with a Buy rating and $500 price target.
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.
