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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.