Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - RBC Capital has reiterated an Outperform rating on Carvana (NYSE:CVNA) with a price target of $460.00, following the company’s mixed third-quarter results. This target sits above the analyst consensus high target of $500 and represents potential upside from the current price of $353.95, according to InvestingPro data.
The firm noted that while the quarterly report contained some mixed elements, it did not derail the longer-term bull case for the online used car retailer. RBC highlighted several positive factors, including a retail unit guidance that appears conservative given recent performance, and the absence of anticipated sub-prime concerns. This aligns with InvestingPro data showing Carvana ’s impressive 39.5% revenue growth over the last twelve months, with analysts forecasting 39% growth for the current fiscal year.
Cost efficiency per vehicle continues to show significant improvement potential, according to RBC, and the company’s balance sheet is deleveraging as profitability increases. These factors support the firm’s continued positive outlook on the stock. Carvana’s gross profit margin stands at 21.9%, while its improved financial position is reflected in a current ratio of 4.0, indicating liquid assets comfortably exceed short-term obligations.
The analysis acknowledged some debatable aspects of the report, including a fourth-quarter unit guidance that was likely below buy-side expectations, slight misses in retail and wholesale GPU (gross profit per unit), and the company’s strategy of offering lower rates to customers.
RBC also noted that Carvana’s two new private purchase partner agreements could indicate lower finance receivable demand, but maintained its Outperform rating based on what it describes as "underappreciated further volume upside into 2026."
In other recent news, Carvana reported its third-quarter 2025 earnings, highlighting a significant increase in revenue to $5.647 billion, which exceeded forecasts. However, the company’s earnings per share (EPS) missed expectations, contributing to a mixed financial outcome. Citizens maintained its Market Outperform rating for Carvana, keeping the stock price target at $460, despite the mixed results. The company’s revenue and EBITDA surpassed consensus expectations by 10% and 6%, respectively, indicating strong performance in certain areas. However, guidance for the fourth quarter of 2025 suggests a potential decline in unit sales compared to the previous quarter. Additionally, the high end of the fourth-quarter EBITDA guidance was slightly below consensus estimates. These developments have been closely watched by investors and analysts alike.
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