Citi analyst Ronald Josey maintained a Buy rating on Carvana Co (CVNA – Research Report) yesterday and set a price target of $280.00.
Ronald Josey has given his Buy rating due to a combination of factors including Carvana’s strong retail sales performance and strategic inventory management. The proprietary tracking data from Citi’s Innovation Lab indicates a significant increase in Carvana’s retail unit sales, showing a 46% year-over-year growth in the first quarter, which exceeded previous expectations and consensus estimates. This robust sales performance is complemented by an expansion in supply, with average weekly inventory increasing by 17.8% quarter-over-quarter, reflecting Carvana’s proactive approach to meeting strong consumer demand.
Moreover, despite a slight decrease in average transaction prices and a narrowing pricing premium to Kelley Blue Book values, Carvana’s efficiency improvements are expected to support enhanced profitability. The company’s shares are currently trading at a multiple of 16 times the estimated 2026 EV/EBITDA, and despite macroeconomic uncertainties, these factors contribute to a positive outlook for Carvana. Consequently, Josey maintains a Buy/High-Risk rating, although the target price has been adjusted to $280.
In another report released yesterday, JMP Securities also reiterated a Buy rating on the stock with a $340.00 price target.
Based on the recent corporate insider activity of 266 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CVNA in relation to earlier this year.