RBC Capital Upgrades Carvana (CVNA) to Outperform

RBC Capital analyst Brad Erickson upgraded Carvana (NYSE: CVNA) from Sector Perform to Outperform with a price target of $280.00 (from $270.00).

The analyst comments: "After CVNA's remarkable turnaround last year, we see the controversial pullback as an opportunity & we upgrade to Outperform & set a $280 PT based on 28x our newly established EV/’26 EBITDA (also raise our '25 estimates). 1) Our bottoms-up cohort analysis implies retail unit upside, particularly as supply improves, 2) we believe GPU levels are largely sustainable, despite recent concerns, 3) we're intrigued at the marketplace opportunity and 4) we expect margin balance sheet improvement going forward as the company illuminates a clearer path to real FCF. Raising retail unit estimates above Street; valuation still attractive where a supply constrained business + open-ended/underpenetrated TAM could create an unexpected compounder over time. Primary risks would be Other GPU durability and maintaining retail volume momentum."

For an analyst ratings summary and ratings history on Carvana click here. For more ratings news on Carvana click here.

Shares of Carvana closed at $188.85 yesterday.

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