Analysts rate Carvana Co (CVNA:NYE) with a Hold rating and a $37 target

STA Research
by: STA Research
Carvana stock price

Based on the Carvana stock forecast from 23 analysts, the average analyst CVNA stock price target is USD 37.64 over the next 12 months. Carvana Co’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of Carvana stock forecast is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Carvana stock price was USD 36.62Carvana stock price has changed by +5.04% over the past week, -13.51% over the past month and -88.89% over the last year.

About Carvana Co (CVNA:NYE):

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company’s platform allows customers to research and identify a vehicle; inspect it using company’s 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona.

 

Most Recent Analyst Ratings for CVNA’s stock price:

 

 

What we like:

Superior risk adjusted returns:

CVNA stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior Revenue Growth:

CVNA stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to book value:

CVNA stock price is trading high compared to its peers median on a price to book value basis.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the Analyst Ratings and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

CVNA stock has shown below median earnings growth in the previous 5 years compared to its sector

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