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Oppenheimer is going all in when it comes to Carvana . The investment firm upgraded its rating on the online used-car seller to an outperform rating from perform. Analyst Brian Nagel accompanied the move by setting a price target of $450 for the stock. Shares of Carvana have surged 60% in 2025. Nagel’s price target implies that the stock could rally another 38% from its Thursday close. CVNA YTD mountain CVNA YTD chart “CVNA represents a unique, digitally-driven disruptor, within the expansive and inefficient domestic used car marketplace,” the analyst wrote. “Following significant fundamental and financial repositioning, the CVNA business model is now ‘humming,’ generating meaningful cash, scaling, and capitalizing well upon improving, underlying demand trends, within the space.” Specifically, Nagel applauded Carvana’s leadership for “aggressively” helping to improve cost efficiencies and restructuring the company’s balance sheet. “These efforts allowed Carvana to deliver sustained profitability, even with top-line trends struggling, post pandemic, and are now underpinning meaningful operational leverage, as consumer demand, across the used car space, is solidifying,” he added. “Substantial” profit over the long term also looks possible, as Carvana recently estimated used unit sales of three million over the next five to 10 years. Nagel noted that the company’s current market share remains “decidedly low.” “Prospects for continued, outsized market share gains within the used-car market should represent a key driver of sales and productivity increases for CVNA for the foreseeable future,” he added. Nagel also pointed out that Carvana shares still appear undervalued at their current price. Additionally, the company is operating with a more optimistic backdrop for used car companies, as it could capitalize on U.S. tariffs potentially driving prices for new automobiles higher.
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