JPMorgan downgrades shares of Carvana to underweight from neutral. The used-car retailer faces a murky growth outlook ahead, the bank says. The bank sees value in Carvana's business model in the long run, but a rising rate environment poses problems in the near future.

JPMorgan downgrades Carvana's stock to $25 from $25 a share. Shares of the used car stock have plummeted roughly 80% this year. The bank's new target implies that the stock could potentially fall another 26% from Friday's close price. Despite the downgrade, JPMorgan raised its price target on Carvana to $35.

Carvana's stock soared more than 40% on Friday after the company said it was working to aggressively would aggressively cut costs as it situates itself for an economic slowdown. Carvana is a maker of car stereos and other stereos that can be used to make video games.
Posted by RU rumbleshark
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