Durable Goods (Jun F) -9.4% vs 9.3% Prior, Ex-Trans 0.2% vs 0.2%
Investing.com - Stephens raised its price target on Carvana (NYSE:CVNA) to $375.00 from $300.00 on Monday, while maintaining an Overweight rating on the online used car retailer. The stock, currently trading at $348.33, has delivered an impressive 172% return over the past year and boasts a perfect Piotroski Score of 9, according to InvestingPro data.
The research firm cited expectations that Carvana’s second-quarter unit sales exceeded both Stephens’ and Wall Street’s estimates. Stephens now projects unit sales growth of 45%, up from its previous estimate of 35% and above the Street consensus of approximately 38%. With the company’s next earnings report scheduled for July 30, InvestingPro subscribers can access 18 additional key insights and detailed financial metrics to make informed investment decisions.
Stephens increased its second-quarter 2025 EBITDA estimate to $593 million from $540 million and raised its EPS forecast to $1.39 from $1.20, compared to Street expectations of $541 million and $1.15 respectively.
The firm noted that Carvana appears to have implemented material price increases and shifted toward younger inventory. Stephens’ analysis indicates that average list prices were 8.9% higher and average sales prices were 4.2% higher in June, while the average vehicle age decreased to 5.4 years, one year younger than the same period last year.
The new $375 price target represents a multiple of 32 times Stephens’ next-twelve-month EBITDA estimate for Carvana, whose second quarter ended on June 30, 2025.
In other recent news, Carvana has seen several updates from analysts regarding its stock performance and potential growth. BofA Securities increased its price target for Carvana shares to $375, maintaining a Buy rating. The analysis cited potential market share gains and a shift from new to used cars as factors that could benefit Carvana. Jefferies also raised its price target for Carvana to $325, highlighting accelerated retail unit growth based on web scrape data. This follows an earlier increase to $315, with a Hold rating maintained. Citizens JMP reiterated a Market Outperform rating for Carvana, emphasizing the company’s technology-driven growth potential and increasing scale. Additionally, Carvana has been identified as a potential candidate for inclusion in the S&P 500 index, according to Bank of America analysts. These developments reflect ongoing interest in Carvana’s performance and future prospects.
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