Carvana downgraded to Neutral at Piper Sandler after a stock rally
Piper Sandler analysts downgraded Carvana (NYSE:CVNA) stock to Neutral after they surged in the aftermath of a better-than-expected Q2 earnings report.
The price target goes to $48 per share.
“CVNA's 2Q results overachieved on nearly every metric, and the restructuring agreement encompassing ~90% of the company's outstanding debt alleviated much of CVNA's going concern risk,” the analysts wrote in an upgrade note.
“But a higher valuation for CVNA would require changes to our long-term volume outlook. And while recent operational improvements (at low volumes) give us greater confidence in CVNA's ability to reach consistent profitability, we don't think they warrant a change to our long-term used vehicle market share expectations.”
In addition to Q2 earnings, Carvana also reported a deal with noteholders to restructure its debt, removing a key overhang on the stock.
RBC analysts also downgraded the CVNA stock recently.
Shares fell 16.2% yesterday.
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