Carvana price target lowered to $5 from $10 at Jefferies

Jefferies analyst John Colantuoni lowered the firm’s price target on Carvana to $5 from $10 and keeps a Hold rating on the shares following the recent press reports indicating that a group of the company’s bondholders that collectively hold $4B, or 70%, of its unsecured debt have signed a cooperation agreement. His model has Carvana running out of cash in Q1 of 2023 without an additional infusion and his lower target reflects the view that the restructuring process is "likely to negatively impact the value of existing equity," Colantuoni said.