Carvana Co.

New York Stock Exchange
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Slightly Bullish +25

Stephens cuts target for Carvana stock to USD 83.00

Analyst downgrade Capacity expansion AI-generated analysis

📉 Stephens & Co. cut its Carvana price target from USD 91.50 to USD 83.00 due to higher interest rates impacting gain-on-sale assumptions.

📈 Carvana reported Q2 revenue of USD 7.38 billion, beating the USD 6.86 billion consensus estimate by roughly 7.6%.

💰 The company achieved an operating profit of USD 680 million and maintained strong liquidity with USD 2.63 billion in cash.

🏗️ Carvana is expanding operations at ADESA Orlando with over 3,000 new parking spaces for inspection and reconditioning.

📅 The company will release Q3 earnings on October 28, 2026, after market close.

📊 Analyst consensus estimates EPS of USD 0.49 for the quarter ending September 2026.

🚗 Carvana trades with a market cap of USD 65.3 billion and a 52-week range between USD 54.46 and USD 97.38.

Bullish Signals
  • Carvana beat Q2 revenue expectations significantly, reporting USD 7.38 billion against a consensus of USD 6.86 billion.
  • The company generated USD 680 million in operating profit and holds USD 2.63 billion in cash and equivalents.
  • Carvana is investing in capacity expansion at ADESA Orlando to enhance same-day delivery capabilities in Central Florida.
Risk Factors
  • Stephens & Co. lowered its price target by USD 8.50, citing higher interest rates negatively impacting gain-on-sale assumptions.
  • Analyst consensus implies a potential downside surprise of 7.79% for the upcoming Q3 earnings report based on current estimates.
Full Analysis
Stephens & Co. lowered its price target for Carvana (CVNA) from USD 91.50 to USD 83.00 on October 6, 2026, while maintaining an Overweight rating. The analyst firm cited higher interest rates as the primary driver for this reduction, specifically noting pressure on gain-on-sale assumptions for upcoming quarters. Carvana reported second-quarter revenue of USD 7.38 billion, which exceeded the consensus estimate of USD 6.86 billion by approximately USD 0.52 billion. The company also posted operating profit of USD 680 million and held cash and cash equivalents of USD 2.63 billion as of June 30, 2026. Beyond financial results, Carvana announced plans to expand its inspection and reconditioning capabilities at ADESA Orlando, adding over 3,000 parking spaces to support same-day delivery in Central Florida. The company is scheduled to report third-quarter results on October 28, 2026, with analysts currently expecting earnings per share of USD 0.49. Carvana's stock was trading around EUR 53.52 (approx. USD 59.52) in mid-October 2026, with a market capitalization of USD 65.3 billion. The 52-week trading range spans from USD 54.46 to USD 97.38, reflecting significant volatility despite the recent revenue beat.