Carvana upgraded to Hold from Underperform at Jefferies

Jefferies upgraded Carvana to Hold from Underperform with a price target of $85, up from $30. The analyst says recent expansion in retail gross profit per unit suggests Carvana’s operational adjustments may have driven sustainable improvements to unit economics. Progress toward achieving positive cash flow also reduces downside risk and results in a more attractive risk/reward for the shares, the analyst tells investors in a research note. Jefferies adds that concern about potential pressure to unit economics once the company’s growth accelerates keeps it from becoming more positive on the stock.