
Carvana (CVNA) Stock Forecast & Price Target
Carvana (CVNA) Analyst Ratings
Bulls say
Carvana Co. exhibits a positive outlook supported by its strong position in the U.S. used-vehicle market, where it is gaining market share at a faster rate than expected from traditional brick-and-mortar competitors. The company's vertically integrated business model enhances customer acquisition and fulfillment, resulting in industry-leading gross profit metrics, while its innovations like the Car Inspect app improve operational efficiency and reduce diagnostic times. Additionally, as transportation costs decline and in-market share gains increase, Carvana is poised to further capitalize on its digital platform, driving higher unit sales and improving fixed cost absorption.
Bears say
Carvana Co has experienced a decline in the ratio of direct consumer buys to auction unit sourcing, dropping from approximately 80% to between 70% and 75%, indicating potential challenges in retail vehicle sales which are critical for revenue generation. Furthermore, the observed sequential decline in retail gross profit per unit (GPUs), from $3,497 to $3,226, raises concerns about the company’s ability to maintain profit margins amidst poor credit decisions and deteriorating receivables that could hinder financing efforts and future sales. The company also faces significant risks due to macroeconomic concerns related to subprime auto delinquencies and operates with a leveraged balance sheet, suggesting financial vulnerability that may negatively impact long-term performance and sustainability.
This aggregate rating is based on analysts' research of Carvana and is not a guaranteed prediction by Public.com or investment advice.
Carvana (CVNA) Analyst Forecast & Price Prediction
Start investing in Carvana (CVNA)
Order type
Buy in
Order amount
Est. shares
0 shares