Stephens analysts reaffirmed their Overweight rating and $190 price target on Carvana (NYSE:CVNA), emphasizing the company’s potential in transforming the $1+ trillion U.S. used vehicle market.
The analysts noted that Carvana’s digital showroom, combined with its regionally centralized infrastructure, enables economies of scale and strong financial metrics. With just 1% market share, Carvana is already the most profitable player on a per-unit basis. Drawing parallels to McDonald’s growth strategy from the 1960s and 70s, the analysts believe Carvana is reshaping both the supply and demand sides of the used vehicle business.