Carvana (NYSE:CVNA) stock is falling on Thursday after JPMorgan analyst Rajat Gupta downgraded the used-car retailer’s shares.
The JPMorgan analyst dropped shares of CVNA stock from a “neutral” rating to an “underweight” rating. For the record, the analysts’ consensus rating for CVNA shares is “reduce” based on 20 opinions.
To go along with this, Gupta has a $10 price target for shares of CVNA stock. That means he expects the stock to fall 74.3% from its prior closing price. For comparison, the analysts’ consensus price prediction for CVNA shares is $32.61 per share.
What’s Behind the CVNA Stock Downgrade?
The JPMorgan analyst takes issue with the amount of growth CVNA stock has seen throughout 2023. That’s why he downgraded the shares while also stating, “valuation has once again disconnected materially from fundamentals,” in a note to clients obtained by CNBC.
Investors will note that this downgrade comes shortly after JMP Securities analyst Nicholas Jones praised CVNA shares. He reiterated an “outperform” rating and increased his price target to $50 per share in a note to clients yesterday.
CVNA stock is seeing some 11.5 million shares change hands as of Thursday morning. That’s still below its daily average trading volume of about 26.9 million shares. It also has CVNA stock down 4.7% as of Thursday morning.
Investors on the lookout for even more of the most recent stock market news will want to keep reading!
We have all of the hottest stock market news that traders will want to know about on Thursday! Among that is what has shares of Nio (NYSE:NIO), Galmed Pharmaceuticals (NASDAQ:GLMD), and CryoPort (NASDAQ:CYRX) stock on the move today. You can read up on all of these matters at the following links!
More Thursday Stock Market News
- NIO Stock Alert: Nio Wants Better Access to U.S. Market
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- Why Is CryoPort (CYRX) Stock Down 26% 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.
