
Carvana (CVNA) Stock Forecast & Price Target
Carvana (CVNA) Analyst Ratings
Bulls say
Carvana Co. has demonstrated strong growth potential, evidenced by its ability to leverage transportation cost efficiencies and increased vehicle hauler loads, which facilitate a higher number of vehicle acquisitions and deliveries without significant increases in costs. The company is capturing a greater share of the U.S. used-vehicle market by outperforming brick-and-mortar competitors, leading to higher fixed cost absorption and improved profitability metrics. Furthermore, initiatives such as the launch of Car Inspect and enhancements in operational efficiencies are poised to streamline inventory management and shorten the time to market, reinforcing Carvana's competitive advantage in the digital retail space.
Bears say
Carvana Co has experienced a decline in the ratio of direct consumer buys to auction unit sourcing, dropping from approximately 80% to 70%-75% over the past year, which raises concerns about its ability to sustain revenue from its core retail vehicle unit sales. The sequential decline in retail gross profit per unit (GPU) from $3,497 to $3,226 further indicates potential challenges in profitability, compounded by risks associated with poor credit decisions and deteriorating receivables performance that threaten future funding for financing efforts. Additionally, the company faces macroeconomic pressures, particularly surrounding subprime auto delinquencies, which could hamper its ability to retail used vehicles and are exacerbated by its leveraged balance sheet and reliance on various forms of debt.
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
Start investing in Carvana (CVNA)
Order type
Buy in
Order amount
Est. shares
0 shares