Carvana (NYSE:CVNA) stock is rising higher on Monday after the used-car retailer got a new rating from JPMorgan analyst Rajat Gupta.
The JPMorgan analyst upgraded shares of CVNA stock from an “underweight” rating to a “neutral” rating. Investors will note that reduce is the current consensus analyst rating for CNVA shares based on 15 opinions.
It’s also worth mentioning that Gupta increased the price target for CVNA stock from $25 per share to $40 per share. That’s a potential upside of 13.6%. It’s also above the analyst consensus price prediction of $37.27 per share for CVNA stock.
What’s Behind the CVNA Stock Upgrade?
Here’s what the JPMorgan analyst had to say about CVNA stock in a note to clients obtained by Seeking Alpha:
“We believe Carvana’s approach to retailing used vehicles had given it a multi-year head start in the online-only space of a fragmented used vehicle industry, allowing it to expand at a rapid pace, though this came at a cost that has now come to hurt during a sharp pull-back in industry volumes due to higher rates and higher prices.”
CVNA stock is up 14.9% as of Monday morning with some 8.7 million shares changing hands. For comparison, its daily average trading volume is about 8.1 million shares.
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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.
