Carvana's stock value has interestingly been rising since April and according to some analysts, this is just the beginning of its growth journey. Oppenheimer, recognising the potential, upgraded Carvana’s stock on Friday from “perform” to “outperform”. The upgrade was made ahead of the company’s scheduled release of Q2 results on July 30. They set a price target of $450 for Carvana (CVNA), which implies an over 30% growth, thereby outshining other price targets shared with Visible Alpha.
In Oppenheimer's point of view, Carvana is a “unique, digitally-driven disruptor” set to take advantage of the "expansive and inefficient domestic used car marketplace." Lower operational cost has placed the company in a favourable position to benefit from an increasing demand. According to a research note by Oppenheimer on Friday, the growth and profit potential of Carvana is underappreciated by investors even though its shares have soared to an all-time high.
Simultaneously, some other analysts predict that Carvana shares will experience modest growth. They recorded a 7% YoY increase in the visitors to Carvana’s website during the last quarter, while BTIG also raised its price target to $395 from $330. On another note, JPMorgan raised its price prediction to $350 from $325, attributing this to the recent increase in Carvana’s market share.
Amid the forecasts, Carvana shares have been seen somewhat rising and trading for $330. Remarkably, the company's shares have nearly doubled in price since April 4 - around the same time bullish notes were published by analysts who anticipated Carvana to catalyse demand for used cars driven by tariffs.