JP Morgan analyst maintains Buy rating on Carvana due to strategic investments driving strong growth

From Yahoo Finance: 2025-06-18 10:53:00

Carvana Co. (NYSE:CVNA) is among the 10 best growth stocks according to billionaires, with a 45% YTD surge and nearly 180% share price gains in the last year. Financial and operating performance is expected to remain strong, with revenue growth projected at 20-30% and adjusted EPS doubling by 2026.

JP Morgan analyst Rajat Gupta maintains a Buy rating on Carvana with a price target of $325. Gupta notes Carvana’s strength in the used car market, citing major restructuring efforts. The company’s digital model and operational efficiency have positioned it ahead in a fragmented industry, with strategic investments driving earnings growth.

Carvana’s investment in infrastructure, including the acquisition of ADESA, gives it a competitive edge with above-average margins. Analyst Gupta believes these strategic moves and operational efficiencies will support sustained growth and potentially lead to upward earnings revisions over time. However, investors should consider the high-beta nature of the stock, which can result in significant returns but also higher risk during market sell-offs.

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Read more: JP Morgan Keeps Buy on Carvana (CVNA) as Strategic Investments Drive Earnings Growth