
Carvana (CVNA) Stock Forecast & Price Target
Carvana (CVNA) Analyst Ratings
Bulls say
Carvana Co is experiencing positive momentum in the used vehicle market, driven by strategically increasing transportation efficiencies that allow for greater vehicle acquisition and delivery without significant additional costs. The company's innovative digital platform and improvements in inventory management are leading to faster unit throughput, which supports higher growth and profitability metrics. With a vertically integrated business model capturing significant market share from traditional brick-and-mortar retailers, Carvana is well-positioned to capitalize on the ongoing shift towards digital transactions in the automotive sector.
Bears say
The analysis of Carvana Co's financial outlook highlights several fundamental concerns impacting its stock performance. The decline in the ratio of direct consumer buys to auction sourcing, coupled with a decrease in retail gross profit per unit (GPUs) from $3,497 to $3,226, indicates potential struggles in maintaining profitability amidst poor credit decisions and deteriorating receivables performance. Additionally, Carvana's leveraged balance sheet poses significant risks as macro-economic factors related to subprime auto delinquencies constrain funding availability, further jeopardizing future sales and overall financial health.
This aggregate rating is based on analysts' research of Carvana and is not a guaranteed prediction by Public.com or investment advice.
Carvana (CVNA) Analyst Forecast & Price Prediction
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