Gevo shares jump as Q3 results top estimates, posts positive EBITDA
Investing.com - JPMorgan has raised its price target on Carvana (NYSE:CVNA) to $425.00 from $415.00 while maintaining an Overweight rating on the stock. The new target sits well within the current analyst range of $330-$500.
The firm noted that Carvana shares have recently paused after strong second-quarter results, with the stock performing largely in line with peers and broader indices. The stock has delivered impressive returns of 133% over the past year and 95% in the last six months. Current valuation stands at approximately 27.5x FY2 EV/EBITDA, with intra-quarter traffic trends remaining solid but matching already elevated investor expectations.According to InvestingPro analysis, Carvana is currently trading near its Fair Value, with 15+ additional exclusive insights available to subscribers.
JPMorgan identified several factors potentially limiting further multiple expansion, including discussions around AI model proliferation, the Amazon/Hertz partnership and its implications for Q4 2025 comparisons, a pending SEC investigation, and recent Tricolor bankruptcy developments.
Despite these concerns and some unfavorable macro developments regarding labor markets and consumer sentiment, JPMorgan emphasized that Carvana’s fundamentals remain solid with continued market share gains, on-track capacity expansion, and healthy asset-backed securities markets. InvestingPro data shows strong revenue growth of 39.5% in the last twelve months, with a healthy current ratio of 4.0, indicating robust liquidity management.
The firm highlighted Carvana’s increasingly strong balance sheet, recently upgraded by S&P, and opportunities for further fundamental improvements that should allow the company to expand its competitive moat and support gradual re-rating over time.
In other recent news, Carvana has reported second-quarter 2025 results that exceeded expectations, with adjusted EBITDA reaching $601 million, surpassing both JPMorgan’s estimate of $530 million and the Bloomberg consensus of $551 million. Following these results, JPMorgan has raised its price target for Carvana to $415, maintaining an Overweight rating. Needham also increased its price target on Carvana to $500, keeping a Buy rating, highlighting the company’s potential for market share expansion. DA Davidson has adjusted its price target for Carvana from $260 to $380, maintaining a Neutral rating due to the company’s impressive year-over-year growth in used vehicle units. Additionally, Citizens JMP reiterated its Market Outperform rating with a $460 price target, citing favorable industry trends. Meanwhile, Sonic Automotive received attention as Benchmark reiterated its Buy rating and $80 price target amidst Amazon’s expansion into the automotive marketplace. These developments indicate significant analyst interest and varied perspectives on Carvana’s growth prospects.
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