Oppenheimer upgrades Carvana as it sees more upside beyond rally

Published 25/07/2025, 14:08
© Reuters

Investing.com -- Oppenheimer upgraded Carvana (NYSE:CVNA) to Outperform from Perform saying investors continue to underestimate the used-car retailer’s long-term growth and profit potential, even as there was recently a sharp rebound in the stock.

The brokerage set a 12–18-month price target of $450, citing a leaner cost base, stronger cash generation, and an improving demand backdrop in the used car market.

It also pointed to the potential for further market share gains, especially as tariffs push new car prices higher.

Analyst forecasts for Carvana’s adjusted EBITDA were raised significantly. For Q2, Oppenheimer now expects $561 million, well ahead of the Street’s $532 million and up from $355 million a year earlier.

The firm’s 2026 and 2027 EBITDA estimates are also above consensus.

“CVNA and the used car space are situated well to capitalize upon ongoing trade disruptions as tariffs likely drive prices for new autos higher,” analysts at Oppenheimer said.

Despite a rise to all-time highs, Oppenheimer said Carvana remains undervalued, trading at a modest multiple of its longer-term earnings power.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.