These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com - DA Davidson has reiterated its Neutral rating and $260.00 price target on Carvana (NYSE:CVNA), currently trading at $336.50, ahead of the company’s second-quarter earnings report expected Wednesday. According to InvestingPro data, the stock has delivered an impressive 65.47% return year-to-date, though it appears to be trading near its Fair Value.
The firm’s analysis of used retail unit data from major traditional franchise auto dealers and CarMax (NYSE:KMX) indicates positive trends for Carvana’s upcoming results. These metrics have historically served as reliable leading indicators for the online used car retailer’s performance, which has shown strong momentum with 32.23% revenue growth over the last twelve months and a perfect Piotroski Score of 9.
DA Davidson also monitors Carvana’s available inventory, which it describes as "an accurate predictor of CVNA results." This indicator similarly points to favorable conditions for the company’s second quarter.
Based on these signals, DA Davidson suggests Carvana is "likely to see accelerating growth in 2Q25," potentially exceeding consensus expectations. The firm notes this anticipated performance may already be reflected in what it considers "a rich valuation."
The $260 price target is based on 24 times DA Davidson’s 2026 EBITDA estimate for Carvana, though the firm indicated its price target is under review and will be reassessed following the earnings announcement.
In other recent news, Carvana Co. announced plans to integrate Inspection and Reconditioning Center capabilities at its ADESA Seattle auction site. This expansion aims to increase the company’s national reconditioning capacity and enhance offerings for customers in the Pacific Northwest. Additionally, Carvana has seen its vehicle discounting return to normal levels following a tariff scare, as noted by research firm BTIG, which maintains a Buy rating on the company.
In terms of analyst activity, several firms have adjusted their price targets for Carvana. JPMorgan raised its price target to $350, maintaining an Overweight rating, and highlighted its Q2 2025 EBITDA estimate of $530 million. Citi increased its price target to $415, citing stronger-than-expected sales with approximately 142,000 units sold in the second quarter, surpassing both consensus estimates and company guidance. Stephens also raised its price target to $375, projecting second-quarter unit sales growth of 45%, which exceeds both its previous estimate and Wall Street’s expectations. These developments reflect a positive outlook from analysts regarding Carvana’s sales performance and growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.