Carvana Price Targets Cut to $390 and $320 on Margin Pressure Concerns
Evercore ISI cut its price target on Carvana to $390 from $430 and kept an In Line rating, citing margin pressure despite rising market share. DA Davidson slashed its target from $470 to $320, prompting shares to open at $341.90 and signaling potential risk ahead.
1. Evercore ISI Lowers Carvana Price Target
An Evercore ISI analyst reduced Carvana's price target to $390 from $430 while maintaining an In Line rating, highlighting margin pressure risks despite the company's ongoing market share gains in online used-vehicle sales.
2. DA Davidson Slashes Target, Shares Gap Down
A DA Davidson analyst cut the price target from $470 to $320, triggering a gap-down opening at $341.90, as the firm expressed concerns over Carvana's profitability trajectory.
3. Analysts Warn of Margin Pressures
Analysts across firms point to rising operating costs and narrowing gross margins as the primary risks to Carvana's earnings, though some underline the company's growth in customer base and order volumes.