Carvana Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

As we approach the end of the fiscal year, all eyes are on Carvana (CVNA), the innovative used car retailer that has been making waves in the market. With its Q4 earnings report just around the corner, investors are eager to see how the company has performed and what the future holds. In this article, we'll take a closer look at the recent forecast changes from Wall Street's most accurate analysts, providing you with the insights you need to make informed investment decisions.



Carvana has been on a roll, consistently beating analyst estimates for revenue in the past three quarters and five of the last ten quarters overall. The company is expected to report quarterly earnings of $0.29 per share, compared to a year-ago loss of $1.00 per share, and quarterly revenue of $3.31 billion, up from $2.42 billion a year earlier. These impressive projections have caught the attention of analysts, who have been updating their ratings and price targets in response to the company's strong performance.



One of the most notable upgrades came from Citigroup analyst Ronald Josey, who upgraded the stock from Neutral to Buy and raised the price target from $195 to $277. This upgrade reflects Citigroup's confidence in Carvana's ability to deliver strong financial results and grow its business. Similarly, RBC Capital analyst Brad Erickson upgraded the stock from Sector Perform to Outperform and boosted the price target from $270 to $280, indicating his optimism about the company's growth prospects.

However, not all analysts are bullish on Carvana. Wedbush analyst Seth Basham maintained a Neutral rating, while Stephens & Co. analyst Jeff Lick reiterated an Overweight rating with a price target of $300. These differing opinions highlight the diverse range of factors that analysts consider when evaluating a company's stock.



One of the key factors driving the differing opinions on Carvana's stock is the company's diverse revenue streams. Carvana's business model is built on retail vehicle unit sales, which drive the majority of its revenue. However, the company also captures additional revenue streams associated with financing, VSCs, auto insurance, and GAP waiver coverage, as well as trade-in vehicles. This diverse revenue mix has contributed to Carvana's strong financial performance and has likely influenced analysts' ratings and price targets.

Another factor that analysts consider is the competitive landscape. Carvana operates in a competitive market with other online used car retailers and traditional dealerships. Some analysts may be concerned about Carvana's ability to maintain market share and compete effectively with rivals, while others may view the company's strategic decisions, such as its acquisition of Adesa in 2021, as a sign of strength.



As we look ahead to Carvana's Q4 earnings report, investors will be watching closely to see if the company can maintain its history of beating analyst estimates. If Carvana's earnings report shows that the company has once again surpassed expectations, it could have a positive impact on investor sentiment and stock performance. However, if the report falls short of analyst estimates, it could lead to a decline in CVNA's stock price.

In conclusion, the recent forecast changes from Wall Street's most accurate analysts reflect a diverse range of opinions on Carvana's stock. While some analysts are bullish on the company's growth prospects, others remain cautious. As investors await Carvana's Q4 earnings report, they should consider the company's strong financial performance, diverse revenue streams, and competitive landscape when making their investment decisions. By staying informed and keeping a close eye on the latest analyst ratings and price targets, investors can position themselves to capitalize on Carvana's continued success.