Carvana price target raised to $12 from $10 at BofA

BofA analyst Nat Schindler raised the firm’s price target on Carvana to $12 from $10 and keeps a Neutral rating on the shares. The firm believes that Carvana is likely to run out of cash by the end of 2023 without a cash infusion and contends that this situation, combined with the high short interest, "can create a situation where this stock’s performance looks binary: either it could go to zero or it would be worth many times its current price." However, BofA also argues that "assigning probabilities for the catalysts that would determine these outcomes (such as a cash infusion) is impossible."