Carvana PT Cuts to $465 and $485 After Q4 EBITDA Miss and Rising Costs
Carvana’s price targets were trimmed from $550 to $465 by Citi and from $545 to $485 by UBS after the company missed Q4 EBITDA expectations due to rising reconditioning costs. Analysts forecast flat to declining retail GPU and maintain cautious 2026 outlook despite Buy ratings.
1. Price Target Revisions
Citi reduced its Carvana price target from $550 to $465 while UBS cut its target from $545 to $485, with both firms retaining Buy ratings despite market volatility. These downward adjustments reflect growing caution around the company’s near-term performance.
2. Q4 EBITDA Shortfall and Cost Pressures
Carvana missed fourth-quarter EBITDA estimates as reconditioning expenses climbed, pressuring margins. Retail gross profit per unit is projected to remain flat or slightly decline year-over-year in the short term.
3. Analyst Outlook and Investor Considerations
Analysts anticipate a restrained outlook for the first quarter and full-year 2026, citing temporary cost headwinds. Both firms indicated interest in accumulating shares if the stock weakens further, signaling potential buying opportunities on dips.