Analyst Adam Jonas is behind this as he drops shares of CVNA stock from an “equal weight” rating to an “underweight” rating. To put that in perspective, the current analysts’ consensus rating for CVNA shares is “reduce” based on 22 opinions.
Despite downgrading shares of CVNA stock, the Morgan Stanley analyst increased his price target from $12 per share to $35 per share. However, that still represents a potential 20% downside for the shares. Also, it’s below the analysts’ consensus price prediction of $39.16 per share for CVNA.
Why The Downgrade for CVNA Stock?
Here’s what Jonas said about CNVA shares in a note to clients obtained by CNBC:
“A second chance for success [is] discounted in the price. We think much of the rally is deserved, but the stock has run well above our increased target driving a less favorable risk-reward vs. our coverage. Even considering our expectation of continued recovery in the business and less bearish views on the used car market, the stock’s reward-skew and 20% downside to PT move us to UW.”
CVNA stock is down 1.7% on Thursday as some 2.5 million shares change hands. The company’s daily average trading volume is well above that at 32 million shares.
Investors looking for even more of the most recent stock market news are going to want to stick around!
InvestorPlace is home to all of the latest stock market coverage that traders need for Thursday! Among that is why shares of National Vision (NASDAQ:EYE) stock, Meta Platforms (NASDAQ:META) stock, and Yellow (NASDAQ:YELL) stock are in the news today. You can read up on all of that news at the following links!
More Thursday Stock Market News
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- Why Is Yellow (YELL) Stock Down 27% Today?
On the date of publication, William White did not have (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.