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Investing.com - Carvana Co. (NYSE:CVNA) has seen its vehicle discounting return to pre-tariff scare levels, according to research firm BTIG, which maintains a Buy rating and $395 price target on the online used car retailer. The company has demonstrated strong financial health, achieving a perfect Piotroski Score of 9, with revenue growing over 32% in the last twelve months to $14.8 billion.
BTIG’s tracking shows that Carvana’s discounting reached its lowest point in May, unlike other industry metrics that experienced the most significant aberrations in March and April. The research firm noted that discounting normalized in June as the market loosened. With a current ratio of 3.81, Carvana maintains strong liquidity to support its operations.
The online auto retailer has experienced little movement in website inventory between the first and second quarters of 2024, BTIG reports. However, July has seen available units climb significantly, increasing by over 30%.
BTIG’s analysis, using SimilarWeb (NYSE:SMWB) data, indicates that unique visitors to carvana.com increased 5% quarter-over-quarter and 7% year-over-year.
The research firm continues to rate Carvana stock as a Buy with a price target of $395, as it monitors the company’s discounting patterns and inventory levels. According to InvestingPro’s Fair Value analysis, the stock is currently trading at fair value, with analysts expecting continued profit growth this year.
In other recent news, several investment banks have adjusted their price targets and ratings for Carvana. Citi has raised its price target to $415 from $325, maintaining a Buy rating, due to stronger-than-expected sales figures. Their data indicates that Carvana sold approximately 142,000 units in the second quarter, marking a 40% year-over-year increase and surpassing consensus estimates. Similarly, Stephens increased its price target to $375, citing expectations of a 45% growth in unit sales, which exceeds both their previous estimates and Wall Street’s consensus.
JPMorgan also raised its price target to $350 while maintaining an Overweight rating, forecasting EBITDA of about $570 million for Q3 2025 with consistent growth. Jefferies adjusted its price target to $325, based on web scrape data showing accelerated retail unit growth, though it kept a Hold rating. Meanwhile, Citizens JMP reiterated a Market Outperform rating with a price target of $440, noting stability in the automotive market despite economic challenges. These developments reflect analysts’ positive outlook on Carvana’s performance and growth trajectory.
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