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Investing.com - BTIG raised its price target on Carvana (NYSE:CVNA) to $450 from $395 on Thursday, while maintaining a Buy rating following the online used car retailer’s quarterly results. The stock, currently trading around $334, has delivered an impressive 150% return over the past year, according to InvestingPro data.
The research firm cited Carvana’s "superlative quarter" that showed strong performance in both retail gross profit per unit (GPU) and per unit operations expense. Units sold also exceeded expectations, though the upside was less dramatic than other metrics. The company’s strong execution is reflected in its 32% year-over-year revenue growth and perfect Piotroski Score of 9, as reported by InvestingPro.
Carvana reported retail GPU of $3,734, representing an increase of $426 quarter-over-quarter and $195 year-over-year. This significantly surpassed the consensus estimate of approximately $3,450.
BTIG noted that about $100 of the retail GPU improvement stemmed from tariff-driven pricing strength, primarily realized in April. The remaining GPU gains were attributed to a roughly 20% decrease in inbound miles driven and continued improvements in reconditioning efficiency.
The firm highlighted Carvana’s execution by comparing its performance to traditional dealers, which increased used car retail GPU by only $109 quarter-over-quarter and $58 year-over-year, substantially below Carvana’s achievements. With a gross profit margin of 21.7% and strong liquidity indicators, Carvana appears well-positioned for continued growth. Discover more insights and 18 additional ProTips with an InvestingPro subscription, including exclusive Fair Value analysis and comprehensive financial health scores.
In other recent news, Carvana has reported its second-quarter 2025 earnings, which exceeded Wall Street expectations. The company posted a revenue of $4.84 billion, marking a 42% increase compared to the previous year. Earnings per share also surpassed forecasts, reflecting Carvana’s strategic focus on operational efficiency and market expansion. JMP Securities responded to these results by raising Carvana’s price target from $440 to $460, while maintaining a Market Outperform rating. The firm’s analysis highlighted that Carvana’s revenue and EBITDA exceeded consensus expectations by 6% and 9%, respectively. These developments indicate strong performance for the online used car retailer. Investors are closely watching these updates as Carvana continues to expand its market presence.
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