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Investing.com - Citizens has reiterated a Market Outperform rating and $460.00 price target on Carvana (NYSE:CVNA) following the company’s mixed third-quarter 2025 results. According to InvestingPro data, Carvana ’s stock is currently trading at $353.95, with analysts’ targets ranging from $330 to $500, suggesting potential upside from current levels.
The online used car retailer reported revenue and EBITDA that exceeded consensus expectations by 10% and 6% respectively, according to Citizens. Carvana’s impressive 39.5% year-over-year revenue growth and $1.79 billion in EBITDA for the last twelve months reflect this strong performance. However, fourth-quarter 2025 unit guidance suggests potential quarter-over-quarter decline, while the high end of fourth-quarter EBITDA guidance came in slightly below consensus.
Citizens addressed investor concerns about Carvana’s credit performance, noting that 2024 and 2025 loan originations are performing well. The firm indicated that credit issues were limited to the 2022 and 2023 loan vintages, when credit standards were looser. InvestingPro data shows Carvana operates with a moderate level of debt and maintains a healthy current ratio of 4.0, indicating liquid assets exceed short-term obligations by a comfortable margin.
The research firm maintained its positive outlook on Carvana’s business model, highlighting the company’s "fundamentally better experience that only continues to improve as the company scales." Citizens specifically mentioned Carvana’s same-day vehicle sales feature currently being tested in Phoenix. This innovation comes as Carvana has delivered remarkable returns, with the stock up 74% year-to-date and 71% over the past year according to InvestingPro data.
Citizens projects Carvana can achieve its goal of selling 3 million units by sustaining over 30% unit growth annually for the next five or more years, citing the company’s "fundamental cost advantage and better consumer experience" as key drivers. While Carvana trades at a high P/E ratio of 88.5, InvestingPro analysis indicates this is relatively low compared to near-term earnings growth expectations, with EPS forecast at $8.87 for fiscal year 2025. InvestingPro offers 16 additional tips and comprehensive metrics in its Pro Research Report, available for Carvana and 1,400+ other US equities.
In other recent news, Carvana Co. reported a substantial revenue increase for the third quarter of 2025, reaching $5.647 billion and surpassing forecasts. Despite this revenue surge, the company missed earnings per share (EPS) expectations, which contributed to a decline in its stock. Carvana also exceeded consensus expectations for both revenue and EBITDA by 10% and 6%, respectively. The company’s quarterly report showed 156,000 units sold and an EBITDA of $637 million, both surpassing market expectations.
Analyst firms have weighed in on Carvana’s performance with mixed reactions. BofA Securities lowered its price target for Carvana from $405 to $385 while maintaining a Buy rating. BTIG reiterated a Buy rating with a $450 price target, noting the company’s retail gross profit per unit fell short of expectations. RBC Capital and Citizens both maintained their Outperform ratings with a $460 price target, highlighting potential volume upside and conservative guidance. Despite mixed third-quarter results, analysts generally maintain a positive outlook on Carvana’s longer-term prospects.
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