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Carvana (CVNA) Stock Could Hit $0

  • Carvana (CVNA) stock is falling after one analyst said CVNA could hit $0 per share.
  • This news comes amid concerns that the company could run out of cash by the end of 2023.
  • The analyst also downgraded CVNA stock to a “neutral” rating.
Carvana (CVNA Stock) automobile dealership vending machine. Carvana is an online-only used car dealer.

Source: Ken Wolter / Shutterstock.com

Carvana (NYSE:CVNA) stock is taking a beating on Wednesday after Bank of America analyst Nat Schindler blasted the company’s shares in a report.

The new coverage from Schindler includes a potential price target of $0 per share for CVNA stock. The analyst claims this is a possibility if the company fails to secure a cash infusion. If it doesn’t, Carvana could run out of funds by the end of next year.

The Bank of America analyst adds that there are no signs of a cash infusion on the way for the used-car retailer. However, if one were to be secured, it could result in shares of CVNA stock multiplying from its current value of $7.34.

It’s also worth mentioning that Schindler downgraded shares of CVNA stock alongside the price target talk. This has the analyst setting a “neutral” rating for shares, as compared to the prior “buy” rating.

What Do Other Analysts Expect From CVNA Stock?

The current consensus rating among analysts sets CVNA stock as a “hold.” This comes from five “buy” ratings, 18 “neutral” ratings and a single “sell” rating. In addition, the consensus price target is $47 per share. That represents a potential 565% upside for the stock.

CVNA stock is down 5.9% as of Wednesday afternoon and down 97.2% since the start of the year.

Investors looking for more of the latest stock market news will want to keep reading!

InvestorPlace has all of the hottest stock market news traders need to know about on Wednesday! That includes what’s going on with shares of Mullen Automotive (NASDAQ:MULN) stock and Arcimoto (NASDAQ:FUV) as well as which stocks to consider selling before December.

More Wednesday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/11/carvana-cvna-stock-could-hit-0/.

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