Carvana downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Carvana to Underweight from Neutral with a $10 price target. The analyst believes Carvana’s valuation “has once again disconnected materially from fundamentals.” The current valuation is baking in a stronger than anticipated return to growth and related operational leverage in 2024 and beyond “for which we have little conviction today,” the analyst tells investors in a research note. The firm sees a lack of support from the used car industry due to supply challenges as well as affordability pressures.