11:18 AM EST, 11/24/2025 (MT Newswires) -- Carvana's ( CVNA ) recent share pullback is overdone and investors should take advantage of the used car retailer's relative weakness, Wedbush Securities said in a note Monday.

Shares of the company were down about 13% in the last month, prompted by the "underwhelming" near-term performance of closest rival Carmax (KMX) as well as rising concerns in the credit markets, according to the note.

Carvana's ( CVNA ) shares are now trading for about 22 times Wedbush's 2027 earnings per share estimate, the investment firm said.

The company has delivered "robust" growth for several quarters and is likely to beat estimates in the near-term, backed by expectations that it will reach a leading market position by unit volume in Q4, among other factors, analysts said.

Wedbush upgraded its rating on the stock to outperform from neutral, and lifted its price target to $400 from $380.

Carvana ( CVNA ) shares were rising more than 7% in recent trading Monday.

Price: 331.76, Change: +21.88, Percent Change: +7.06