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Investing.com - JPMorgan raised its price target on Carvana (NYSE:CVNA) to $415 from $350 on Thursday, while maintaining an Overweight rating on the online used car retailer’s stock. The company, which has achieved a perfect Piotroski Score of 9 according to InvestingPro data, has seen its stock surge over 150% in the past year.
The price target increase follows Carvana’s second-quarter 2025 results, which JPMorgan noted were "well ahead of expectations." The company reported adjusted EBITDA of $601 million for the quarter, exceeding JPMorgan’s estimate of $530 million and Bloomberg consensus of $551 million. With trailing twelve-month EBITDA reaching $1.54 billion, Carvana trades at an EV/EBITDA multiple of 32.5x.
Carvana’s unit sales reached 143,000 vehicles in the second quarter, representing a 41% year-over-year increase. JPMorgan highlighted that this growth rate was approximately 35 percentage points above the industry average.
Based on the strong quarterly performance, JPMorgan has raised its EBITDA forecasts for Carvana to $2,245 million for 2025 and $2,975 million for 2026.
The new December 2025 price target of $415 represents significant upside potential from Carvana’s current trading levels, reflecting JPMorgan’s continued confidence in the company’s growth trajectory and operational execution.
In other recent news, Carvana reported its second-quarter 2025 earnings, surpassing Wall Street expectations with a revenue of $4.84 billion, marking a 42% increase compared to the previous year. The company’s earnings per share also exceeded forecasts, highlighting its strategic focus on operational efficiency and market expansion. JMP Securities noted that Carvana’s revenue and EBITDA exceeded consensus expectations by 6% and 9%, respectively. Following these results, several analysts have adjusted their price targets for the company. Needham raised its price target to $500 from $340, maintaining a Buy rating, while praising Carvana’s "unique and best in class model." BTIG also increased its price target to $450 from $395, citing strong margins and a "superlative quarter" with impressive retail gross profit per unit. Additionally, JMP Securities raised its price target to $460 from $440, maintaining a Market Outperform rating. These recent developments reflect Carvana’s strong performance and potential for further growth within the industry.
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