Is Carvana the 'New Used Car King?' These Analysts Think So, and the Stock Is Rising.

Core Insights - Carvana shares have surged approximately 60% since the beginning of 2025, reflecting strong market momentum and investor confidence [1][4] - Wedbush upgraded Carvana's stock rating from "neutral" to "outperform" and increased the price target from $380 to $400, indicating a bullish outlook on the company's performance [1][7] Company Performance - Analysts at Wedbush believe Carvana's growth momentum is accelerating rapidly, potentially allowing it to surpass rival CarMax in unit vehicle volume sooner than anticipated [2][3] - Carvana's revenue for the current quarter is projected to be $5.2 billion, which is an increase of about 3% from previous estimates [3] Competitive Landscape - The poor performance of CarMax, Carvana's largest competitor, has been cited as a contributing factor to Carvana's recent stock fluctuations, suggesting that the market may have overreacted to Carvana's share price decline [3] - Analysts predict that Carvana will achieve a leading market position by unit volume in the fourth quarter of 2026, with expectations that it will surpass CarMax's quarterly used unit volumes six months earlier than initially forecasted [2][3]