Amazon (AMZN) plans to enter the used-car market with online sales of pre-owned Hyundai (HYMLF) vehicles. While there were concerns that this would spell trouble for used-car retailer Carvana (CVNA), Bank of America analysts Michael McGovern and Justin Post argue this won’t be the case.
According to the Bank of America analysts, Amazon’s expansion into the used-car market is more likely to harm online listing sites, such as CarGurus, than it will Carvana. That’s due to Carvana’s marketplace model and focus on more than just used Hyundai vehicles.
McGovern and Post maintained Bank of America’s Buy rating for Carvana and its price target of $220. This represents a potential upside of 18.89% for CVNA stock.
More Recent CVNA Stock Analyst Coverage
Bank of America isn’t the only firm that has weighed in on Carvana stock recently. Five-star Piper Sandler analyst Alexander Potter also praised CVNA stock and said the recent share price drop represents a buying opportunity for investors. He also highlighted the stock’s resilience to President Donald Trump’s tariffs.
The Piper Sandler analyst is also bullish on Carvana, upgrading the company from Neutral to Overweight and setting a $225 price target. That’s a potential 20.91% for CVNA stock.
CVNA stock is up 0.31% as of this writing but is still down 8.54% year-to-date. Investors will note that Carvana shares are up 116.43% over the last year.
Is CVNA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Carvana is Moderate Buy based on nine Buy and six Hold ratings over the last three months. With that comes an average price target of $284.29, a high of $365, and a low of $220. This represents a potential 52.51% upside for CVNA stock.
See more CVNA stock analyst ratings
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