Carvana dips as BofA downshifts to 'neutral' on macro risks

Carvana Co

06/04/2026 15:26

** Online used-car retailer Carvana's CVNA.N shares dip 0.3% to $312.67 on Mon after BofA Global Research cuts rating to 'neutral' from 'buy', citing macroeconomic risks

** BofA chops PT by $40 to $360, which is ~15% above stock's last close

** "With the recent oil shock potentially pressuring an already stretched lower & middle income consumer, and 2-year rates moving the opposite direction, we think the risk/reward profile is more balanced now than heading into 2026, despite management's strong execution & still-elevated growth," BofA analysts write in note

** BofA also cites emerging headwinds, including CVNA's largest competitor taking a "self-inflicted hit" to margins to drive competitive intensity and potentially impacting GPUs (gross profit/unit)

** Despite strong tax refund payouts, BofA says it's less optimistic on accelerating y/y% unit growth near-term

** Now, 17 of 26 analysts rate CVNA stock "strong buy" or "buy", 8 rate "hold" and 1 recommends "sell"; median PT $430, LSEG data

** With move on the session, shares down ~26% YTD and underperforming S&P 500's .SPX 3.5% decline

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))