Jefferies Boosts Carvana Rating to Buy and Increases Price Target to $475
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 01 2025
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Should l Buy CVNA?
Source: Benzinga
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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: 332.790
Low
395.00
Averages
497.94
High
550.00
Current: 332.790
Low
395.00
Averages
497.94
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.
CARVANA STOCK DROPS 6% FOLLOWING Q4 PROFIT DISAPPOINTMENT
- Company Performance: Carvana shares have fallen by 6% following the announcement of a profit miss in the fourth quarter.
- Market Reaction: The decline in share value reflects investor concerns over the company's financial performance and future outlook.
See More
Carvana Shares Drop 21% Following Disappointing Earnings Report
- Carvana's Stock Performance: Shares of Carvana fell significantly in after-hours trading following the release of their quarterly results.
- Quarterly Results Overview: The company's financial report showed mixed results, contributing to the decline in stock value.
See More
Carvana Q4 Earnings Exceed Expectations with Strong Growth Metrics
- Net Income Surge: Carvana reported a Q4 net income of $951 million, reflecting a 58% year-over-year increase and surpassing market expectations by $340 million, indicating robust performance in retail unit sales and Adjusted EBITDA.
- Adjusted EBITDA Metrics: The company achieved an Adjusted EBITDA of $511 million with a margin of 9.1%, demonstrating significant progress in operational efficiency and profitability, thereby enhancing its competitive position in the market.
- 2025 Strategic Goals: Carvana is focused on three key objectives for 2025: substantial growth in retail units and Adjusted EBITDA, fundamental improvements in unit economics and customer experience, and the development of foundational capabilities to support sustainable growth.
- Future Outlook: Looking ahead to 2026, Carvana anticipates continued significant growth in both retail units sold and Adjusted EBITDA, particularly in Q1 2026, assuming stable market conditions, which will further solidify its leadership in the industry.
See More
U.S. Markets Rally After Tariff Ruling
- Market Rally: Major U.S. indexes experienced a rebound after the Supreme Court struck down former President Trump's tariff regime, with the S&P 500, Dow Jones, and Nasdaq posting modest gains despite soft GDP growth and persistent inflation, indicating market sensitivity to policy uncertainty.
- Tariff Policy Risk: The Court's 6-3 ruling invalidated broad tariffs, easing cost pressures for importers; however, Trump immediately indicated plans for a new 10% global tariff, leaving markets grappling with ongoing trade policy risks.
- Economic Data Impact: Despite the rally following the tariff ruling, disappointing 1.4% GDP growth and elevated core inflation figures kept investor sentiment cautious, contributing to underperformance in small caps and reflecting a trend of rotation out of risk assets.
- Future Outlook: Investors are preparing for upcoming tech earnings and economic indicators that could shape the Federal Reserve's policy outlook, maintaining a cautious stance as they await new data and corporate results.
See More
RBC Lowers Carvana Price Target to $440 Amid Concerns
- Price Target Adjustment: RBC Capital analyst Brad Erickson has lowered Carvana's price target from $500 to $440 while maintaining an ‘Outperform’ rating, indicating a continued optimistic outlook with a projected 32% upside potential.
- Weak Market Performance: Carvana's shares have declined over 21% year-to-date after more than doubling last year, reflecting market concerns about its profitability, particularly after a quarterly profit miss that led to an almost 8% drop in stock price on Thursday.
- Analyst Rating Discrepancies: While Wall Street maintains an average ‘Buy’ rating on Carvana, 18 out of 25 analysts rated it ‘Buy’ or higher, indicating a divergence in market sentiment, with an average price target of $438.05 suggesting a 31.6% upside.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Carvana has shifted to ‘bearish’ from ‘neutral’ a week ago, with extremely high message volumes indicating investor concerns about future performance, as retail message volume surged over 30% in the last 24 hours.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
CARVANA STOCK DROPS 6% FOLLOWING Q4 PROFIT DISAPPOINTMENT
- Company Performance: Carvana shares have fallen by 6% following the announcement of a profit miss in the fourth quarter.
- Market Reaction: The decline in share value reflects investor concerns over the company's financial performance and future outlook.
See More
Carvana Shares Drop 21% Following Disappointing Earnings Report
- Carvana's Stock Performance: Shares of Carvana fell significantly in after-hours trading following the release of their quarterly results.
- Quarterly Results Overview: The company's financial report showed mixed results, contributing to the decline in stock value.
See More
Carvana Q4 Earnings Exceed Expectations with Strong Growth Metrics
- Net Income Surge: Carvana reported a Q4 net income of $951 million, reflecting a 58% year-over-year increase and surpassing market expectations by $340 million, indicating robust performance in retail unit sales and Adjusted EBITDA.
- Adjusted EBITDA Metrics: The company achieved an Adjusted EBITDA of $511 million with a margin of 9.1%, demonstrating significant progress in operational efficiency and profitability, thereby enhancing its competitive position in the market.
- 2025 Strategic Goals: Carvana is focused on three key objectives for 2025: substantial growth in retail units and Adjusted EBITDA, fundamental improvements in unit economics and customer experience, and the development of foundational capabilities to support sustainable growth.
- Future Outlook: Looking ahead to 2026, Carvana anticipates continued significant growth in both retail units sold and Adjusted EBITDA, particularly in Q1 2026, assuming stable market conditions, which will further solidify its leadership in the industry.
See More
U.S. Markets Rally After Tariff Ruling
- Market Rally: Major U.S. indexes experienced a rebound after the Supreme Court struck down former President Trump's tariff regime, with the S&P 500, Dow Jones, and Nasdaq posting modest gains despite soft GDP growth and persistent inflation, indicating market sensitivity to policy uncertainty.
- Tariff Policy Risk: The Court's 6-3 ruling invalidated broad tariffs, easing cost pressures for importers; however, Trump immediately indicated plans for a new 10% global tariff, leaving markets grappling with ongoing trade policy risks.
- Economic Data Impact: Despite the rally following the tariff ruling, disappointing 1.4% GDP growth and elevated core inflation figures kept investor sentiment cautious, contributing to underperformance in small caps and reflecting a trend of rotation out of risk assets.
- Future Outlook: Investors are preparing for upcoming tech earnings and economic indicators that could shape the Federal Reserve's policy outlook, maintaining a cautious stance as they await new data and corporate results.
See More
RBC Lowers Carvana Price Target to $440 Amid Concerns
- Price Target Adjustment: RBC Capital analyst Brad Erickson has lowered Carvana's price target from $500 to $440 while maintaining an ‘Outperform’ rating, indicating a continued optimistic outlook with a projected 32% upside potential.
- Weak Market Performance: Carvana's shares have declined over 21% year-to-date after more than doubling last year, reflecting market concerns about its profitability, particularly after a quarterly profit miss that led to an almost 8% drop in stock price on Thursday.
- Analyst Rating Discrepancies: While Wall Street maintains an average ‘Buy’ rating on Carvana, 18 out of 25 analysts rated it ‘Buy’ or higher, indicating a divergence in market sentiment, with an average price target of $438.05 suggesting a 31.6% upside.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Carvana has shifted to ‘bearish’ from ‘neutral’ a week ago, with extremely high message volumes indicating investor concerns about future performance, as retail message volume surged over 30% in the last 24 hours.
See More
US Stocks Close Lower Amid AI Outlook Concerns
- Market Weakness: The S&P 500 index fell by 0.28%, the Dow Jones Industrial Average decreased by 0.54%, and the Nasdaq 100 index dropped by 0.41%, indicating market concerns over the outlook for artificial intelligence, particularly affecting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Initial jobless claims in the US fell to 206,000, a 5-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, reflecting uncertainties in economic recovery.
- Shifts in Fed Policy Expectations: Hawkish comments from Fed officials suggest a potential need for interest rate hikes to combat persistent inflation, leading to a more hawkish outlook for future rate paths, which further dampens market sentiment.
- Earnings Season Nearing Conclusion: With over three-quarters of S&P 500 companies reporting, 74% exceeded expectations, and Q4 earnings are projected to grow by 8.4%, demonstrating corporate resilience, yet the market remains cautious about future growth prospects.
See More
