# The bank lowered the stock's price target to $360 from $400.

*business · news · 2026-04-06 · CNBC*

## Key points

- Bank of America downgraded Carvana to neutral and cut its price target to $360.
- Carvana shares have dropped 26% in 2026 due to fallout from the Iran war.
- Higher gas prices post-Iran conflict are expected to reduce discretionary auto spending, especially among Gen Z.
- Rising 2-year yields threaten Carvana's lending competitiveness and profit margins.
- CarMax is lowering retail used unit margins, increasing competition for Carvana in car loans.

**Companies:** Carvana, CarMax
**Countries:** United States, Iran

[Read the full story on CNBC](https://www.cnbc.com/2026/04/06/bank-of-america-downgrades-carvana-why-the-stocks-recent-dip-isnt-a-buying-opportunity.html)

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