JMP Securities analyst Nicholas Jones lowered the firm’s price target on Carvana to $15 from $25 and keeps an Outperform rating on the shares as part of a broader research note on Internet and Digital Media. The analyst states that the JMP Online Auto Tracker data suggests that estimates for earnings and revenue may still be too high based on the company’s overall new, used, and wholesale unit volumes, average vehicle prices, and access to inventory. Record high demand and low interest rates during the pandemic drove auto prices significantly higher, but auto prices have now started to revert as rising interest rates impacted affordability, the firm tells investors in a research note.
Published first on TheFly
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