Carvana price target lowered to $400 from $460 at BofA

BofA analyst Michael McGovern lowered the firm’s price target on Carvana (CVNA) to $400 from $460 and keeps a Buy rating on the shares. Management shifted back to the qualitative guidance framework of “significant growth” for units and EBITDA, both for 2026 and on a sequential basis in Q1, notes the analyst, who believes investors may have been looking for an EBITDA guidance range to provide greater confidence in the incremental margin trajectory given Q4 EBITDA missing estimates.