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Investing.com - Citizens JMP has reiterated its Market Outperform rating and $460.00 price target on Carvana (NYSE:CVNA), the online used car retailer. The target sits well above the current stock price of $357.81, with analyst targets ranging from $330 to $500. According to InvestingPro data, the company’s current valuation appears to be near its Fair Value.
The firm’s analysis points to favorable industry trends supporting its positive outlook on Carvana’s business prospects. This optimism is backed by impressive financial performance, with revenue growing 39.48% over the last twelve months to $16.27 billion. InvestingPro analysis shows 15+ additional insights about Carvana’s growth potential and market position.
Citizens JMP specifically highlighted that motor vehicles and parts represent one of the top three fastest-growing retail categories in the current market environment.
The firm noted that these industry tailwinds provide positive momentum for Carvana’s business operations and support maintaining the Market Outperform rating.
Food and beverage was identified as another top-performing retail category, though this segment is less directly relevant to Carvana’s core business of online used vehicle sales.
In other recent news, Carvana has seen a series of positive developments following its second-quarter results. JPMorgan raised its price target for Carvana to $415 from $350, noting that the company’s adjusted EBITDA of $601 million exceeded both their estimate of $530 million and the Bloomberg consensus of $551 million. Needham also increased its price target to $500 from $340, maintaining a Buy rating and highlighting Carvana as a leading growth story in its sector. BTIG followed suit, raising its price target to $450 from $395, citing strong retail gross profit per unit and operational efficiency. DA Davidson adjusted its price target to $380 from $260, maintaining a Neutral rating while acknowledging Carvana’s impressive year-over-year growth in used vehicle units. Meanwhile, Sonic Automotive received attention as Benchmark reiterated its Buy rating and $80 price target amidst Amazon’s expansion into the automotive marketplace. Amazon has launched Amazon Autos, partnering with Hyundai to facilitate vehicle purchases, though it does not sell cars directly. These developments reflect significant analyst confidence in Carvana’s performance and potential, while Sonic Automotive benefits from strategic industry shifts.
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