Barclays Raises Price Target for Carvana (NYSE: CVNA) Amidst Growth and Debt Concerns

Font: Financial Modeling Prep  • Jul 21, 2026

• Barclays increased its price target for Carvana (NYSE: CVNA) to $94, maintaining an "Overweight" rating, signaling a positive investment outlook for the online auto retailer.
• Despite strong operational growth, including a 40% surge in retail units and a record Adjusted EBITDA of $672 million, concerns persist regarding Carvana's heavy debt and spending.
• While Carvana is expanding its growth strategy into new-car sales, its stock has declined 20% year-to-date, highlighting competitive pressures in the auto retail market.

On July 21, 2026, analyst firm Barclays increased its price target for Carvana to $94, up from $93. Carvana is an online auto retailer that changes the car-buying process with its e-commerce platform and distinctive car vending machines. The company manages sales, financing, and logistics, competing with retailers like CarMax and Sonic Automotive.

Barclays maintained its "Overweight" rating on Carvana when the stock's price was $64.13. An "Overweight" rating means the analyst believes the stock will likely perform better than the average return of other stocks in its sector. This positive investment outlook is supported by the company's recent financial performance and strategic moves.

This confidence reflects Carvana's strong growth, including a 40% surge in retail units in the first quarter of 2026. As highlighted by Zacks Investment Research, the company has seen six straight quarters of at least 40% unit sales growth. This consistent expansion is a key factor in its positive evaluation.

Financially, the company reported a record Adjusted EBITDA of $672 million with a leading margin of 10.4%. Adjusted EBITDA is a measure of operational profit. Despite this, concerns remain about Carvana's heavy debt and spending, which could affect future profitability, as noted by Zacks Investment Research.

The company is also expanding into new-car sales, investing $171 million in acquiring physical dealerships. However, Carvana's stock has declined 20% year-to-date. This contrasts with its 2025 performance and the recent share price increases of its peers, showing the competitive pressures in the auto retail market.