Carvana (CVNA.US) stock jumped over 8.0% on Monday after Piper Sandler upgraded the online car seller to overweight from neutral, however lowered the price target to $73 from $98. Investment bank believes that Carvana shares are 'grossly undervalued' despite falling used-car prices and price could double from current levels
Analyst Alexander Potter noted that the company's shares are a tenth as valuable as they were a year back, and while the firm has to deal with an "array of possible outcomes," many of those "imply substantial upside". According to Potter’s estimate, the company's sales volume should reach 3.3 million units in 2035, which would account for roughly 8% of the US used-car market.
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Open account Try demo Download mobile app Download mobile appPotter also points out that due to rising interest rates and bankruptcy, the Carvana stock price "could easily continue falling, but with so much potential upside, we think investors should consider owning at least some CVNA".
Carvana (CVNA.US) stock fell approximately 90.0% from its 2021 highs. Stock launched today's session sharply higher, however buyers struggle to break above local resistance at $42.00 and as long as the price sits below another downward impulse towards recent lows at $30.20 may be launched. On the other hand, if bulls manage to break above aforementioned resistance, then the upward move may accelerate towards $58.00, where recent highs are located. Source: xStation5
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