Carvana (CVNA) stock rose more than 3%, as of writing, on Wednesday, as top Jefferies analyst John Colantuoni upgraded his rating from Hold to Buy and boosted the price target from $385 to $475. The analyst expects the online used-car retailer to continue to deliver elevated growth. He believes that Carvana is “best-positioned to benefit from a nascent shift to digital in the massive $800B used car market.”
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Jefferies Analyst Is Confident About Carvana’s Growth
Colantuoni highlighted that Jefferies’ consumer survey, proprietary web scrape, and capacity analysis indicate that Carvana will continue to deliver elevated growth and upside to the Street’s consensus projections. Furthermore, the 5-star analyst expects fixed cost leverage to supplement top-line growth, driving further improvement in unit economics and peer-high earnings before interest, tax, depreciation, and amortization (EBITDA) growth.
Based on his findings, Colantuoni increased his 2027 revenue and EBITDA estimates to 15% and 12% above the consensus expectations. His revised price target is based on an Enterprise Value (EV)/EBITDA (2027) multiple of 28x, which reflects a 25% premium to the peer-based growth-adjusted multiple. The analyst believes that CVNA’s premium valuation is justified by its track record of delivering upside to estimates and scope for superior growth.
In fact, Colantuoni believes that his above-consensus estimates might be conservative, given that he has modeled Q3 2025 units 3% below Jefferies’ web scrape and assumed that unit growth will moderate by about 10% in 2026. The analyst sees upside to his estimates also because he has assumed that Carvana will reach just a 10% share by 2035, despite Jefferies’ survey showing that about 30% of adults would prefer to buy online.
Colantuoni ranks No. 841 among more than 10,000 analysts on TipRanks. He has a success rate of 65% with an average return per rating of 12.6% over a one-year period.
Is CVNA a Good Stock to Buy?
Currently, Wall Street has a Strong Buy consensus rating on Carvana stock based on 15 Buys and five Holds. The average CVNA stock price target of $427.22 indicates 9.3% upside potential. CVNA stock has rallied 91% year-to-date.
