Carvana Fundamentals Appear Intact as Price Target Reaffirmed

Carvana's stock has been reaffirmed as Buy this morning by one analyst, confident in the fundamentals.

BTIG analyst Marvin Fong has reiterated a Buy rating with a price target of $450, signaling confidence in the company's underlying strengths.

The stock's performance comes amid a broader market environment where concerns about consumer credit are heightened, evidenced by the recent bankruptcy of sub-prime lender Tricolor and CarMax's decision to bolster its loan portfolio reserves. Markets are keenly watching Carvana's financing practices, particularly its reliance on securitization markets.

BTIG's analysis suggests that Carvana's access to securitization markets is unlikely to be jeopardized. This assessment is based on the belief that even if past securitizations experience impairments to their equity tranche, Carvana's fundamental value drivers remain intact. The firm is closely monitoring credit across the consumer landscape but remains optimistic about Carvana's prospects. This reaffirmation follows a series of positive adjustments to Carvana's price target by BTIG throughout the year.

Back in May 2025, BTIG had raised the price target to $330 from $295, maintaining a Buy rating. This increase was fueled by strong performance metrics, including retail sales of 133,900 units, surpassing the consensus estimate of 126,200 units. The retail gross profit per unit (GPU) reached $3,308, also exceeding expectations, and operational expenses per unit decreased by 4.7% quarter-over-quarter, showcasing improved efficiency. In April 2025, BTIG maintained its Buy rating with a $295 price target, noting reduced discounting on Carvana's website, indicating positive shifts in market dynamics.

Further solidifying their bullish stance, in July 2025, BTIG increased the price target to $450 from $395, again reiterating the Buy rating. This adjustment followed Carvana's impressive quarterly results, highlighting notable achievements in retail gross profit per unit and operational expenses per unit, along with unit growth that surpassed expectations. Other analysts, however, present a more varied outlook. A September 2025 analysts' survey showed price targets ranging from $110 to $200, underscoring diverse perspectives on Carvana's market position and growth potential.

The online used car retailer's ability to manage its financing activities will remain a key focus for markets. BTIG's continued confidence, reflected in the reaffirmed Buy rating and $450 price target, suggests that the firm believes Carvana is well-positioned to navigate potential headwinds and capitalize on its core strengths. The market's reaction to evolving credit conditions and Carvana's financial strategies will likely dictate the stock's trajectory in the coming months.