Source: Ken Wolter / Shutterstock.com
Carvana (NYSE:CVNA) stock is on the move Thursday after the used car retailer’s share got a new price target from JPMorgan analyst Rajat Gupta.
This has the JPMorgan analyst increasing his price target for CVNA stock from $70 per share to $130 per share. That represents a potential upside of 49.2% over its closing price yesterday. It’s also bullish next to the analysts’ consensus price prediction of $70 per share.
To go along with that, Gupta upgraded the firm’s rating for CVNA from “neutral” to “overweight” this morning. That’s another bull stance next to the analysts’ consensus rating of hold based on 17 opinions.
Why The Bull Stance on CVNA Stock?
Here’s what the JPMorgan analysts said about Carvana in a note obtained by CNBC.
“The rapid progress on margin expansion and overall EBITDA, combined with existing cash on the balance sheet, should put to rest any lingering concerns around optionality to reduce debt/interest burden over time.”
Investors will note this new price target and rating for Carvana came alongside a record Q1 earnings report. The company easily beat out both EPS and revenue estimates during the quarter.
CVNA stock is up 36.1% as of Thursday morning with more than 14 million shares traded. That’s well above its daily average of about 6.3 million shares.
There are more stock market stories worth reading about below!
We have all of the hottest stock market news ready for Thursday! Among that is what shares of Emergent BioSolutions (NYSE:EBS), Rivian (NASDAQ:RIVN) and Allarity Therapeutics (NASDAQ:ALLR) stock are moving today. All of that info is available at the following links!
More Thursday Stock Market News
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.
Article printed from InvestorPlace Media, https://investorplace.com/2024/05/jpmorgan-just-raised-its-price-target-on-carvana-cvna-stock/.
©2024 InvestorPlace Media, LLC
