Jim Cramer Predicts 27% Upside for Carvana Stock Amid 9,644% Rally

Jim Cramer believes Carvana (CVNA) has room to run despite its 9,644% rally since 2022. The used-car e-retailer has only captured 1% of the market and has a massive opportunity ahead. Cramer remains bullish on the company's leadership and growth prospects, despite near-term risks. He recommends investors buy the stock on weakness, with a high-end price target of $440 for a 27% upside.

Jim Cramer, a prominent financial analyst and host of CNBC's "Mad Money," expressed his bullish stance on Carvana (CVNA) despite the stock's significant 9,644% rally since 2022. Cramer believes that the used-car e-retailer has immense growth potential, with only 1% of the market currently captured, leaving ample room for expansion. He advises investors to consider Carvana for the long term, recommending a high-end price target of $440, which represents a 27% upside from the current price.

Cramer's optimism is based on Carvana's strong leadership and growth prospects. The company has been transforming from a high-burn disruptor into a profitability leader. Its streamlined digital model, expanding margins, and robust unit sales growth signal a business that is rapidly scaling. Despite near-term risks, such as a high debt load, Cramer remains confident in Carvana's long-term trajectory.

Recent analyst updates have echoed Cramer's optimism. Citigroup (Citi) raised its price target to $415, citing strong sales tracking and a perfect Piotroski Score of 9, indicating financial health. Other analysts, such as Stephens, Citizens JMP, and Jefferies, have also adjusted their price targets upward, reflecting the varied yet optimistic outlooks on Carvana's market position and growth trajectory.

While Carvana's stock has rallied significantly, Cramer advises investors to buy on weakness, suggesting that the stock may pull back before continuing its upward trajectory. This strategy aligns with Cramer's long-term view of the company's potential.

References:
[1] https://uk.investing.com/news/analyst-ratings/citi-raises-carvana-stock-price-target-to-415-on-strong-sales-tracking-93CH-4160342
[2] https://finance.yahoo.com/news/cvna-vs-abg-auto-retailer-141300298.html
[3] https://www.linkedin.com/posts/cnbc_jim-cramer-explains-why-he-likes-carvana-activity-7348491132906938369-QBYR