Carvana stock price target raised to $350 from $325 at JPMorgan

Investing.com - JPMorgan has raised its price target on Carvana (NYSE:CVNA) to $350 from $325 while maintaining an Overweight rating on the online used car retailer’s stock. According to InvestingPro data, the company currently trades near its Fair Value, with a perfect Piotroski Score of 9, indicating strong financial health.

The investment bank maintains its Q2 2025 EBITDA estimate for Carvana at $530 million, compared to Bloomberg consensus of $546 million and what it believes is a buy-side expectation of approximately $560 million. For Q3 2025, JPMorgan forecasts EBITDA of about $570 million, assuming consistent 40% unit growth.

Web traffic data suggests June ended with an acceleration in Carvana’s market share relative to the industry, with this trend continuing into July. This indicates potential upside to JPMorgan’s estimates, which assume further moderation in industry volumes. The company’s impressive 32.2% revenue growth over the last twelve months supports this momentum. InvestingPro subscribers can access 18 additional key insights about Carvana’s growth potential and market position.

JPMorgan cites several factors supporting further multiple expansion for Carvana, including the pace of unit growth and EBITDA per unit expansion, with overall economics approximately twice that of its largest peer. The company’s growth rate exceeds industry averages by more than 40 basis points, while maintaining less than 2% current market share.

The investment bank also notes Carvana’s improving balance sheet, with net debt to EBITDA now below 2x, lower than traditional retailers. This is reflected in the company’s strong current ratio of 3.81 and "GREAT" Financial Health Score from InvestingPro. However, JPMorgan acknowledges that with high near-term EBITDA expectations, there could be a temporary pause in the stock’s recent outperformance.

In other recent news, Carvana has reported significant developments in its financial performance and market projections. Citi has increased its price target for Carvana to $415, citing stronger-than-expected sales with approximately 142,000 units sold in the second quarter, marking a 40% increase year-over-year. This figure slightly surpasses consensus estimates and the company’s own guidance. Stephens also raised its price target to $375, noting that second-quarter unit sales exceeded expectations, with a projected growth of 45%. The firm highlighted Carvana’s strategic price adjustments and younger inventory as factors contributing to this growth.

Additionally, Citizens JMP reiterated a Market Outperform rating with a $440 price target, emphasizing Carvana’s growth potential despite industry challenges. Jefferies increased its price target to $325, following data indicating accelerated retail unit growth. BofA Securities also raised its target to $375, maintaining a Buy rating and pointing to Carvana’s potential market share gains and strategic shifts from new to used cars. These recent developments reflect a positive outlook from analysts regarding Carvana’s continued growth trajectory.

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