Piper Sandler has increased its price target for Carvana (CVNA, Financial) from $225 to $230, maintaining an Overweight rating. The decision follows an analysis of used vehicle data, which was refreshed to include first-quarter numbers. In March, used vehicle sales saw a noteworthy double-digit growth compared to the previous year, driven largely by trade-ins and significant pre-tariff purchasing activity.
The firm anticipates this heightened sales momentum to have persisted into April. However, both new and used vehicle inventories are reportedly diminishing at a quick pace, which may soon lead to price hikes. Despite potential price increases affecting overall market transactions, Piper Sandler is optimistic about Carvana's ability to sustain its growth in unit sales as long as automotive credit remains accessible.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Carvana Co (CVNA, Financial) is $253.48 with a high estimate of $340.00 and a low estimate of $148.00. The average target implies an upside of 29.44% from the current price of $195.83. More detailed estimate data can be found on the Carvana Co (CVNA) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Carvana Co's (CVNA, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Carvana Co (CVNA, Financial) in one year is $47.23, suggesting a downside of 75.88% from the current price of $195.83. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Carvana Co (CVNA) Summary page.
