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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 475.88 USD with a low forecast of 360.00 USD and a high forecast of 550.00 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
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 364.070
Low
360.00
Averages
475.88
High
550.00
Current: 364.070
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.
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
CarMax Appoints New CEO Without Automotive Background.
- New Leadership: CarMax is appointing a CEO from outside the auto industry.
- Turnaround Strategy: The new CEO is expected to help initiate a turnaround for the company.
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Block & Leviton Investigates Carvana for Potential Securities Violations
- Stock Price Plunge: Carvana's shares fell over 20% during trading on January 28, primarily due to allegations from a Gotham City Research report that its profitability relies on undisclosed related-party transactions, leading to diminished investor confidence and potential further sell-offs.
- Investigation Launched: Block & Leviton is investigating whether Carvana violated securities laws and plans to file actions to recover losses for affected investors, demonstrating a commitment to protecting investor rights through legal avenues.
- Financial Issues Exposed: The report claims that DriveTime burned over $1 billion in cash while leveraging 20 to 40 times EBITDA to support Carvana's earnings, raising concerns about the transparency of such financial maneuvers and potentially attracting regulatory scrutiny.
- Whistleblower Incentives: Block & Leviton encourages whistleblowers with non-public information about Carvana to assist in the investigation, offering rewards of up to 30% of any successful recovery from the SEC, aiming to attract more insiders to disclose potential violations.
See More
Carvana Under Investigation for Possible Securities Violations
- Investigation Launched: Kirby McInerney LLP is investigating potential violations of federal securities laws by Carvana and its senior management, indicating serious concerns regarding the company's compliance practices.
- Profitability Concerns: A report by Gotham City Research alleges that Carvana's reported profitability is based on undisclosed related-party transactions with DriveTime and Bridgecrest, which may undermine investor confidence in the company's financial transparency.
- Stock Price Plunge: Following the report's release, Carvana's stock price fell by $67.68, or approximately 14.2%, from $477.72 on January 27 to $410.04 on January 28, reflecting market fears about the company's financial health.
- Legal Risks: Although no lawsuit has been filed yet, the ongoing investigation could lead to future legal actions, prompting investors to remain vigilant about their rights and potential legal implications.
See More
Rosen Law Firm Investigates Carvana Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into potential securities claims against Carvana Co. due to allegations of issuing materially misleading business information, potentially entitling shareholders to compensation.
- Stock Price Impact: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that its earnings were 'far more dependent' on private companies linked to its controlling shareholders, raising concerns about financial transparency.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, allowing affected shareholders to participate without any out-of-pocket costs, which encourages broader participation from impacted investors.
- Firm's Track Record: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and successful track record in the securities litigation space.
See More
Rosen Law Firm Investigates Carvana Securities Fraud Claims
- Securities Fraud Investigation: Rosen Law Firm has announced an investigation into Carvana Co. due to potential misleading business information issued to investors, which may lead to securities claims for shareholders.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, raising significant investor concerns.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who suffered losses due to Carvana's misleading information, with no out-of-pocket fees required from investors.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and influence in the field.
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
CarMax Appoints New CEO Without Automotive Background.
- New Leadership: CarMax is appointing a CEO from outside the auto industry.
- Turnaround Strategy: The new CEO is expected to help initiate a turnaround for the company.
See More
Block & Leviton Investigates Carvana for Potential Securities Violations
- Stock Price Plunge: Carvana's shares fell over 20% during trading on January 28, primarily due to allegations from a Gotham City Research report that its profitability relies on undisclosed related-party transactions, leading to diminished investor confidence and potential further sell-offs.
- Investigation Launched: Block & Leviton is investigating whether Carvana violated securities laws and plans to file actions to recover losses for affected investors, demonstrating a commitment to protecting investor rights through legal avenues.
- Financial Issues Exposed: The report claims that DriveTime burned over $1 billion in cash while leveraging 20 to 40 times EBITDA to support Carvana's earnings, raising concerns about the transparency of such financial maneuvers and potentially attracting regulatory scrutiny.
- Whistleblower Incentives: Block & Leviton encourages whistleblowers with non-public information about Carvana to assist in the investigation, offering rewards of up to 30% of any successful recovery from the SEC, aiming to attract more insiders to disclose potential violations.
See More
Carvana Under Investigation for Possible Securities Violations
- Investigation Launched: Kirby McInerney LLP is investigating potential violations of federal securities laws by Carvana and its senior management, indicating serious concerns regarding the company's compliance practices.
- Profitability Concerns: A report by Gotham City Research alleges that Carvana's reported profitability is based on undisclosed related-party transactions with DriveTime and Bridgecrest, which may undermine investor confidence in the company's financial transparency.
- Stock Price Plunge: Following the report's release, Carvana's stock price fell by $67.68, or approximately 14.2%, from $477.72 on January 27 to $410.04 on January 28, reflecting market fears about the company's financial health.
- Legal Risks: Although no lawsuit has been filed yet, the ongoing investigation could lead to future legal actions, prompting investors to remain vigilant about their rights and potential legal implications.
See More
Rosen Law Firm Investigates Carvana Securities Claims
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into potential securities claims against Carvana Co. due to allegations of issuing materially misleading business information, potentially entitling shareholders to compensation.
- Stock Price Impact: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that its earnings were 'far more dependent' on private companies linked to its controlling shareholders, raising concerns about financial transparency.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, allowing affected shareholders to participate without any out-of-pocket costs, which encourages broader participation from impacted investors.
- Firm's Track Record: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and successful track record in the securities litigation space.
See More
Rosen Law Firm Investigates Carvana Securities Fraud Claims
- Securities Fraud Investigation: Rosen Law Firm has announced an investigation into Carvana Co. due to potential misleading business information issued to investors, which may lead to securities claims for shareholders.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, raising significant investor concerns.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who suffered losses due to Carvana's misleading information, with no out-of-pocket fees required from investors.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and influence in the field.
See More
