Raymond James downgrades Carvana to sell with good news priced in

Raymond James downgraded Carvana to Underperform from Market Perform without a price target. The downgrade is not a call on upcoming Q4 results as industry trends suggest stable market conditions, but on the recent stock performance, the analyst tells investors in a research note. The firm says that while Carvana’s internal restructuring and market adaptation strategies “have fortified its position,” external market conditions and sector-specific challenges may dampen its near-term growth trajectory. It expects investors to adopt a “wait-and-see” approach, looking for clear indicators of improved sales growth and sustained profitability before re-engaging with the stock, which is currently hovering near its 52-week high. Raymond James has valuation concerns, saying the good news seems already reflected in the stock price.