Deutsche Bank upgraded its Carvana target to $600 from $395 and maintained a Buy rating, citing the company’s strong positioning for a cyclical recovery in 2026. The bank highlighted anticipated support from proposed vehicle incentive policies under the “Big Beautiful Bill” and continued aging of the national car fleet, which should drive incremental consumer spending and accelerate digital adoption in the used-vehicle market. Analysts noted that Carvana’s expanding network of vehicle inspection and reconditioning centers gives it a physical infrastructure edge in an industry where online penetration remains underdeveloped, setting the stage for unit volume growth to exceed consensus estimates.

Carvana delivered 44% year-over-year unit growth in its third quarter, selling nearly 156,000 retail vehicles, while revenue climbed 55% to $5.65 billion. The company reported net income of $263 million, up 78%, and adjusted EBITDA of $637 million, a 48% increase. Management signaled continued momentum into the fourth quarter by reiterating expectations to exceed 150,000 units sold and to achieve adjusted EBITDA at or above the high end of its $2.0–2.2 billion forecast for full-year 2025. However, with shares trading at more than 100 times trailing earnings, the stock’s valuation appears fully extended, leaving limited downside protection against any operational missteps or broader market volatility and prompting some investors to await a more attractive entry point.