Citigroup Lowers Carvana Price Target to $445 Amid Q3 Record Sales

Carvana Co (CVNA) has experienced mixed analyst reactions with a general consensus maintaining a Buy rating despite recent price target reductions, such as Citigroup lowering its target to $445 from $490. The stock saw volatility following a post-earnings selloff, with cautious optimism from analysts citing conservative growth outlooks for Q4. Carvana reported strong Q3 results, including record retail unit sales and revenue, driven by its vertically integrated e-commerce model. Despite its rapid growth and a significant year-to-date stock increase, Carvana's valuation remains a concern, scoring low on undervaluation checks and indicating the current market price might be higher than intrinsic value estimates. The company's future cash flow projections are optimistic, but some caution is advised as the stock recently pulled back sharply. Overall, Carvana is seen as a promising but volatile investment, balancing strong operational performance with valuation risks.