Carvana upgraded to Neutral from Underweight at JPMorgan

JPMorgan upgraded Carvana to Neutral from Underweight with a price target of $40, up from $25. The firm says its meetings with operations executives provide greater comfort that Carvana’s recent improvements in unit economics, specifically in the core retail operations, “are likely to be sticky.” The “known unknowns” around the Carvana story are better appreciated by investors today and it is possible the company can execute its way through this uncertain macro environment and used car industry phase in a way that limits downside to near- and medium-term estimates, the analyst tells investors in a research note.