Wedbush Boosts Carvana Price Target to $400, Shares Rise

Carvana (CVNA) traded higher on Monday after Wedbush issued a bullish upgrade and increased its price target by 5% to $400. The new target represents a 29% upside from the stock’s level heading into the week.

Key Reasons for the Upgrade

Wedbush upgraded Carvana to “outperform” from “neutral.”
Price target raised to $400, signaling strong confidence in long-term growth.
Analyst Scott Devitt highlighted that the recent pullback—driven by:

Weakness at competitor CarMax (KMX)
Rising credit-market concerns
— is overdone.

Competitive Position vs. CarMax

Carvana is expected to surpass CarMax’s retail sales volume by Q4 2026.
This is six months earlier than previously projected.
Currently, Carvana trails CarMax’s unit sales by roughly 45,000 vehicles in comparable quarters.

Long-Term Growth Outlook

Wedbush projects Carvana will:

Achieve its 5–10 year goal of 3 million annual used vehicle sales
Reach this milestone by 2033
Continue gaining market share despite macro pressures

Market Reaction

Carvana (CVNA) rose over 3% premarket following the upgrade.
Shares benefited from renewed confidence in its long-term scaling strategy.