Wells Fargo Boosts Carvana Price Target to $390, Raises Overweight Rating

Wells Fargo analyst David Lantz has raised Carvana's (CVNA) price target from $310 to $390, a 25.81% increase. The rating remains "Overweight." Analysts forecast an average target price of $321.82, with a high estimate of $440 and a low of $148. The average target implies a 6.37% downside from the current price. GF Value estimates a downside of 83.62% from the current price of $343.72.

Wells Fargo analyst David Lantz has significantly boosted Carvana's (CVNA) price target from $310 to $390, marking a substantial 25.81% increase. This adjustment reflects the analyst's continued optimism about the company's growth prospects. The rating for Carvana remains "Overweight," indicating a strong belief in the stock's potential [1].

The new price target comes on the heels of a robust earnings report, where Carvana reported a 46% year-over-year increase in retail units sold, reaching 133,898 units. Revenue also surged by 38% to $4.232 billion, while adjusted EBITDA increased by $253 million to $488 million. The company maintained positive net income for the fifth consecutive quarter, showcasing its financial stability [2].

Analysts' consensus is generally bullish, with an average target price of $321.82, ranging from $148 to $440. This average target price implies a 6.37% downside from the current stock price of $343.72. However, GuruFocus estimates a GF Value of $56.30, suggesting a more significant downside of 83.62% from the current price [1].

While the earnings report highlights Carvana's strengths, potential challenges remain. The company faces macroeconomic factors such as tariffs that could impact car prices and consumer demand. Additionally, maintaining high growth rates and operational efficiency while scaling to its target of 3 million annual retail sales will be crucial [2].

Investors and stakeholders are advised to closely monitor Carvana's performance and the broader market conditions as they evaluate their positions in the stock.

References:
[1] https://www.gurufocus.com/news/2988451/carvana-cvna-sees-boost-in-price-target-by-wells-fargo-analyst-cvna-stock-news
[2] https://www.gurufocus.com/news/2987063/wells-fargo-boosts-carvana-cvna-price-target-amid-market-optimism-cvna-stock-news