Carvana (CVNA) stock is cruising higher on Thursday, fueled by a price target increase and analyst upgrade from JPMorgan.
The used car retailer's shares received a shot in the arm after JPMorgan analyst Rajat Gupta raised his price target for CVNA from $70 per share to a much more bullish $130 per share. This represents a potential upside of nearly 50% compared to yesterday's closing price.
Adding to the positive sentiment, Gupta upgraded the firm's rating for CVNA from "neutral" to "overweight." This signals a more optimistic outlook from JPMorgan on Carvana's future prospects.
Previously, the analyst consensus price target for CVNA remained at $70 per share, reflecting a more cautious view. Similarly, the overall analyst consensus rating for the stock was "hold," indicating a neutral stance.
JPMorgan's upgrade and price target hike suggest the firm sees significant growth potential for Carvana. This positive outlook comes on the heels of a strong earnings report for Q1, which may have influenced Gupta's bullish stance.
Investors are clearly reacting favorably to the news, sending Carvana's stock price upwards. Whether the rally can be sustained will depend on Carvana's ability to deliver on its promises and navigate the competitive used car market.