In a report released today, Mike McGovern from Bank of America Securities reiterated a Hold rating on Carvana Co, with a price target of $440.00.
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Mike McGovern has given his Hold rating due to a combination of factors, balancing Carvana’s strong near‑term execution with emerging medium‑term risks. He highlights that Q1 results materially exceeded expectations on revenue, EBITDA, and unit growth, supported by improved reconditioning efficiency and tools that are beginning to narrow performance gaps across facilities.
At the same time, he notes that free cash flow was softer once inventory investments are considered, and that unit growth is likely to face tougher comparisons in the second half as tax‑refund tailwinds fade and some demand may have been pulled forward. While he lifts his 2026 revenue and EBITDA estimates and raises the price objective from $410 to $440 to reflect stronger share gains, he views the risk/reward as more balanced from here, justifying a Neutral (Hold) stance rather than a more aggressive rating.
Based on the recent corporate insider activity of 375 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVNA in relation to earlier this year.