- CVNA +6.14% KMX +5.33%
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Carvana shares have gained about 60% since the start of 2025.Key Takeaways
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Wedbush upgraded Carvana stock to outperform, calling the company the "new used car king."
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Analysts at Wedbush see Carvana passing rival CarMax in unit vehicle volume in the fourth quarter of next year.
Shares of auto retailer Carvana (CVNA) jumped Monday after Wedbush upgraded the stock, calling the company the “new used car king.”
Wedbush raised its rating to “outperform” from “neutral,” and lifted the price target from $380 to $400. The stock was up 6% at around $328 in recent trading.
Why This Is Significant
Analysts say Carvana’s momentum is accelerating fast enough to overtake rival CarMax sooner than expected. The upgrade from Wedbush indicates rising confidence in Carvana’s growth trajectory. The call comes as Carvana stock has already surged this year, while shares of CarMax have tumbled.
In a note to clients, the analysts pointed to the poor performance of the company’s biggest rival, CarMax (KMX), as a reason for a recent decline in Carvana’s shares. They argued the pullback—Carvana was trading around $400 in late July—was overdone, “and investors should take advantage of this period of relative weakness.”
The analysts added that signs indicate that Carvana “will achieve a leading market position by unit volume in 4Q26,” noting that “momentum has shifted” to the company in recent weeks, with estimates suggesting Carvana “will surpass CarMax’s quarterly used unit volumes six months earlier than initially forecasted.”
Wedbush now sees the Carvana’s current quarter revenue of $5.2 billion, up about 3% from its previous outlook.
Carvana shares have jumped about 60% in 2025, while CarMax shares have slumped roughly 55%.
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